Don't Ignore The Fact That This Insider Just Sold Some Shares In Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)

We wouldn't blame Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) shareholders if they were a little worried about the fact that Matthew Demchyk, the Senior Vice President of Investments recently netted about US$580k selling shares at an average price of US$42.73. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Gaming and Leisure Properties

Gaming and Leisure Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Peter Carlino bought US$1.0m worth of shares at a price of US$30.45 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$42.47. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 110.50k shares for US$2.9m. But they sold 13.56k shares for US$580k. In the last twelve months there was more buying than selling by Gaming and Leisure Properties insiders. They paid about US$26.21 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

Gaming and Leisure Properties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Gaming and Leisure Properties insiders own about US$534m worth of shares (which is 5.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Gaming and Leisure Properties Tell Us?

An insider sold Gaming and Leisure Properties shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gaming and Leisure Properties. Every company has risks, and we've spotted 4 warning signs for Gaming and Leisure Properties (of which 1 can't be ignored!) you should know about.

But note: Gaming and Leisure Properties 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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