Ark Restaurants Corp. (NASDAQ:ARKR) insiders placed bullish bets worth US$1.2m in the last 12 months
In the last year, multiple insiders have substantially increased their holdings of Ark Restaurants Corp. (NASDAQ:ARKR) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Ark Restaurants
The Last 12 Months Of Insider Transactions At Ark Restaurants
In the last twelve months, the biggest single purchase by an insider was when insider Thomas Satterfield bought US$600k worth of shares at a price of US$19.29 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$19.22). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Ark Restaurants insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ark Restaurants is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Ark Restaurants Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Ark Restaurants. Not only was there no selling that we can see, but they collectively bought US$1.2m worth of shares. This is a positive in our book as it implies some confidence.
Does Ark Restaurants 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. Ark Restaurants insiders own about US$29m worth of shares (which is 43% 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.
So What Does This Data Suggest About Ark Restaurants Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Ark Restaurants insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. While conducting our analysis, we found that Ark Restaurants has 3 warning signs and it would be unwise to ignore these.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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