Have Insiders Sold Extended Stay America, Inc. (NASDAQ:STAY) Shares Recently?

By
Simply Wall St
Published
November 16, 2020
NasdaqGS:STAY

Anyone interested in Extended Stay America, Inc. (NASDAQ:STAY) should probably be aware that the Independent Director, Richard Wallman, recently divested US$246k worth of shares in the company, at an average price of US$12.28 each. On the bright side, that sale was only 7.6% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Extended Stay America

The Last 12 Months Of Insider Transactions At Extended Stay America

In the last twelve months, the biggest single purchase by an insider was when President Bruce Haase bought US$513k worth of shares at a price of US$10.33 per share. So it's clear an insider wanted to buy, at around the current price, which is US$12.56. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$974k for 88.00k shares. On the other hand they divested 28.50k shares, for US$338k. In total, Extended Stay America insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:STAY Insider Trading Volume November 16th 2020

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

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Extended Stay America insiders own 1.0% of the company, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Extended Stay America Insider Transactions Indicate?

An insider hasn't bought Extended Stay America stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Extended Stay America.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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