Don't Ignore The Insider Selling In Full House Resorts

Anyone interested in Full House Resorts, Inc. (NASDAQ:FLL) should probably be aware that the Senior VP, Lewis Fanger, recently divested US$143k worth of shares in the company, at an average price of US$5.11 each. On the bright side, that sale was only 9.9% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Full House Resorts

Full House Resorts Insider Transactions Over The Last Year

Notably, that recent sale by Lewis Fanger is the biggest insider sale of Full House Resorts shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$5.05. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 71.00k shares for US$341k. But insiders sold 40.25k shares worth US$208k. In total, Full House Resorts insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Full House Resorts insiders own 6.8% of the company, worth about US$12m. 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 Full House Resorts Tell Us?

Insiders sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So the recent selling doesn't worry us too much. 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. Case in point: We've spotted 1 warning sign for Full House Resorts you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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