Insider Sellers Might Regret Selling AMC Networks Shares at a Lower Price Than Current Market Value

AMC Networks Inc.'s (NASDAQ:AMCX) stock price has dropped 12% in the previous week, but insiders who sold US$1.8m in stock over the past year have had less luck. The average selling price of US$18.38 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for AMC Networks

AMC Networks Insider Transactions Over The Last Year

The Independent Director, Matthew Blank, made the biggest insider sale in the last 12 months. That single transaction was for US$955k worth of shares at a price of US$19.09 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$10.02). So it is hard to draw any strong conclusion from it.

In the last year AMC Networks insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does AMC Networks Boast High Insider Ownership?

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. AMC Networks insiders own about US$21m worth of shares. That equates to 4.8% 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.

What Might The Insider Transactions At AMC Networks Tell Us?

The fact that there have been no AMC Networks insider transactions recently certainly doesn't bother us. Our analysis of AMC Networks insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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 instance, we've identified 3 warning signs for AMC Networks (2 are potentially serious) you should be aware of.

Of course AMC Networks 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.