Allied Gaming & Entertainment Insider Ups Holding By 550% During Year
Viewing insider transactions for Allied Gaming & Entertainment Inc.'s (NASDAQ:AGAE ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Allied Gaming & Entertainment
The Last 12 Months Of Insider Transactions At Allied Gaming & Entertainment
The insider Roy Choi made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$0.94 each. That implies that an insider found the current price of US$0.95 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Allied Gaming & Entertainment share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Roy Choi.
Roy Choi bought a total of 1.80m shares over the year at an average price of US$1.00. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Allied Gaming & Entertainment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Allied Gaming & Entertainment 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. From our data, it seems that Allied Gaming & Entertainment insiders own 10% of the company, worth about US$3.7m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The Allied Gaming & Entertainment Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Allied Gaming & Entertainment insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Allied Gaming & Entertainment and we suggest you have a look.
But note: Allied Gaming & 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.
