Insider Stock Buying Reaches AU$311.9m On Star Entertainment Group

In the last year, multiple insiders have substantially increased their holdings of The Star Entertainment Group Limited (ASX:SGR) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Star Entertainment Group

Star Entertainment Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Bruce Mathieson bought AU$283m worth of shares at a price of AU$2.98 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.51). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Bruce Mathieson was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 170.95m shares for AU$312m. But they sold 280.00k shares for AU$400k. In the last twelve months there was more buying than selling by Star Entertainment Group insiders. Their average price was about AU$1.82. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Star Entertainment Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Star Entertainment Group Insiders Bought Stock Recently

We saw some Star Entertainment Group insider buying shares in the last three months. Insiders shelled out AU$32k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Star Entertainment Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Star Entertainment Group insiders own about AU$114m worth of shares. That equates to 7.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Star Entertainment Group Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Star Entertainment Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Star Entertainment Group (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

Of course Star Entertainment Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.