Reversal Of Fortune For Chicken Soup for the Soul Entertainment Insiders Who Made A US$539.4k Purchase

Insiders who bought US$539.4k worth of Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) stock in the last year recovered part of their losses as the stock rose by 10% last week. However, total losses seen by insiders are still US$490k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Chicken Soup for the Soul Entertainment

The Last 12 Months Of Insider Transactions At Chicken Soup for the Soul Entertainment

In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO William Rouhana bought US$499k worth of shares at a price of US$2.30 per share. That means that an insider was happy to buy shares at above the current price of US$0.21. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Chicken Soup for the Soul Entertainment insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Chicken Soup for the Soul Entertainment insiders own 4.5% of the company, worth about US$303k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Chicken Soup for the Soul Entertainment Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Chicken Soup for the Soul Entertainment insiders are doubting 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. To that end, you should learn about the 6 warning signs we've spotted with Chicken Soup for the Soul Entertainment (including 4 which don't sit too well with us).

But note: Chicken Soup for the Soul Entertainment may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.