PLAYSTUDIOS' Stock Sinks To US$2.30, But Insiders Sold Even Lower

PLAYSTUDIOS, Inc.'s (NASDAQ:MYPS) value has fallen 16% in the last week, but insiders who sold US$293k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$4.50 is still lower than the current share price.

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.

Check out our latest analysis for PLAYSTUDIOS

PLAYSTUDIOS Insider Transactions Over The Last Year

The General Counsel, Joel Agena, made the biggest insider sale in the last 12 months. That single transaction was for US$180k worth of shares at a price of US$4.49 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$2.30). So it may not shed much light on insider confidence at current levels.

Insiders in PLAYSTUDIOS didn't buy any shares in 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does PLAYSTUDIOS Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that PLAYSTUDIOS insiders own 14% of the company, worth about US$45m. 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 PLAYSTUDIOS Insider Transactions Indicate?

The fact that there have been no PLAYSTUDIOS insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by PLAYSTUDIOS insiders. The modest level of insider ownership is, at least, some comfort. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: PLAYSTUDIOS 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.