Those following along with Scientific Games Corporation (NASDAQ:SGMS) will no doubt be intrigued by the recent purchase of shares by Ronald Perelman, Chairman of the company, who spent a stonking US$8.4m on stock at an average price of US$20.65. While that only increased their holding size by -132%, it is still a big swing by our standards.
Scientific Games Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman Ronald Perelman was not their only acquisition of Scientific Games shares this year. They previously made an even bigger purchase of US$8.4m worth of shares at a price of US$22.41 per share. That implies that an insider found the current price of US$22.41 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Ronald Perelman was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Scientific Games
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Scientific Games insiders own about US$49m worth of shares. That equates to 2.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Scientific Games Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Scientific Games we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Scientific Games, you should check out this free report on analyst forecasts for the company.
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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