Starz Entertainment President Acquires 18% More Stock

Investors who take an interest in Starz Entertainment Corp. (NASDAQ:STRZ) should definitely note that the President, Jeffrey Hirsch, recently paid US$11.21 per share to buy US$336k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 18%.

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Starz Entertainment Insider Transactions Over The Last Year

In fact, the recent purchase by Jeffrey Hirsch was the biggest purchase of Starz Entertainment shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$10.86. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Starz Entertainment insiders were buying shares, but not selling. They paid about US$13.15 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

View our latest analysis for Starz Entertainment

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Starz Entertainment

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.4% of Starz Entertainment shares, worth about US$6.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Starz Entertainment Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Starz Entertainment stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Starz Entertainment. At Simply Wall St, we found 1 warning sign for Starz Entertainment that deserve your attention before buying any shares.

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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.