SkyCity Entertainment Group Insiders Are Down NZ$88k But Regain Some Losses

Insiders who bought NZ$505.6k worth of SkyCity Entertainment Group Limited (NZSE:SKC) stock in the last year have seen some of their losses recouped as the stock gained 10% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled NZ$88k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for SkyCity Entertainment Group

SkyCity Entertainment Group Insider Transactions Over The Last Year

The Non-Executive Director David Robert Attenborough made the biggest insider purchase in the last 12 months. That single transaction was for NZ$229k worth of shares at a price of NZ$2.29 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$1.84). 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.

SkyCity Entertainment Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SkyCity Entertainment Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

SkyCity Entertainment Group Insiders Bought Stock Recently

There was some insider buying at SkyCity Entertainment Group over the last quarter. Non Executive Director Kate Hughes shelled out NZ$64k 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 SkyCity Entertainment Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests SkyCity Entertainment Group insiders own 0.3% of the company, worth about NZ$3.6m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

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

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that SkyCity Entertainment Group insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for SkyCity Entertainment Group (1 can't be ignored!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.