Insider at GameStop Corp. (NYSE:GME) sold stock last year at a price of US$218 per share

Even though GameStop Corp. ( NYSE:GME ) stock gained 3.8% last week, the insider who sold US$414k worth of stock over the past year is probably better off. Selling at an average price of US$218, which is higher than the current price, may have been the wisest decision for this insider as their investment would have been worth less now than when they sold.

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 GameStop

The Last 12 Months Of Insider Transactions At GameStop

In the last twelve months, the biggest single sale by an insider was when the Independent Director, James Grube, sold US$414k worth of shares at a price of US$218 per share. 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$122). So it may not tell us anything about how insiders feel about the current share price. James Grube was the only individual insider to sell over the last year.

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!

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

Does GameStop Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that GameStop insiders own 17% of the company, worth about US$1.6b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About GameStop Insiders?

It doesn't really mean much that no insider has traded GameStop shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the GameStop insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with GameStop and understanding them should be part of your investment process.

But note: GameStop 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. 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.