Have Insiders Sold MGM Resorts International Shares Recently?

Some MGM Resorts International (NYSE:MGM) shareholders may be a little concerned to see that the Chief Operating Officer, Corey Sanders, recently sold a substantial US$1.4m worth of stock at a price of US$34.43 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At MGM Resorts International

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Paul Salem bought US$5.0m worth of shares at a price of US$33.80 per share. So it's clear an insider wanted to buy, at around the current price, which is US$33.97. 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. 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. The good news for MGM Resorts International share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$7.6m for 226.40k shares. But they sold 59.95k shares for US$2.1m. In total, MGM Resorts International 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!

Check out our latest analysis for MGM Resorts International

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Insider Ownership Of MGM Resorts International

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. MGM Resorts International insiders own 1.1% of the company, currently worth about US$103m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The MGM Resorts International Insider Transactions Indicate?

Unfortunately, there has been more insider selling of MGM Resorts International stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. While it's good to be aware of 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. In terms of investment risks, we've identified 2 warning signs with MGM Resorts International and understanding these should be part of your investment process.

Of course MGM Resorts International 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 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.