JAKKS Pacific Stock Down 10% But Insiders Still In US$162k Profit \

Insiders who bought JAKKS Pacific, Inc. (NASDAQ:JAKK) stock lover the last 12 months are probably not as affected by last week’s 10% loss. After accounting for the recent loss, the US$260k worth of shares they purchased is now worth US$422k, suggesting a good return on their investment.

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 JAKKS Pacific

The Last 12 Months Of Insider Transactions At JAKKS Pacific

Over the last year, we can see that the biggest insider purchase was by insider Lawrence Rosen for US$260k worth of shares, at about US$13.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$21.10), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

JAKKS Pacific is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of JAKKS Pacific

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. JAKKS Pacific insiders own about US$46m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At JAKKS Pacific Tell Us?

It doesn't really mean much that no insider has traded JAKKS Pacific shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in JAKKS Pacific and we see no evidence to suggest they are worried about 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. Every company has risks, and we've spotted 2 warning signs for JAKKS Pacific (of which 1 is significant!) you should know about.

Of course JAKKS Pacific 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, but not derivative transactions.

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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.