Insiders Who Sold ONE Group Hospitality Missed Out On 11% Stock Increase

While it’s been a great week for The ONE Group Hospitality, Inc. (NASDAQ:STKS) shareholders after stock gained 11%, company insiders might have missed out on those gains after selling stock earlier this year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for ONE Group Hospitality

ONE Group Hospitality Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Dimitrios Angelis, sold US$216k worth of shares at a price of US$7.71 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.55. So it is hard to draw any strong conclusion from it. Dimitrios Angelis was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 9.72k shares worth US$61k. But they sold 28.00k shares for US$216k. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of ONE Group Hospitality

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. ONE Group Hospitality insiders own about US$37m worth of shares. That equates to 22% 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.

So What Do The ONE Group Hospitality Insider Transactions Indicate?

It doesn't really mean much that no insider has traded ONE Group Hospitality shares in the last quarter. Our analysis of ONE Group Hospitality insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, ONE Group Hospitality has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

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.