Insider Buying: The Drive Shack Inc. (NYSE:DS) Chairman Just Bought US$2.6m Worth Of Shares
Drive Shack Inc. (NYSE:DS) shareholders (or potential shareholders) will be happy to see that the Chairman, Wesley Edens, recently bought a whopping US$2.6m worth of stock, at a price of US$1.51. Not only is that a big swing, but it increased their holding size by 26%, which is definitely great to see.
View our latest analysis for Drive Shack
Drive Shack Insider Transactions Over The Last Year
Notably, that recent purchase by Wesley Edens is the biggest insider purchase of Drive Shack shares that we've seen in the last year. That implies that an insider found the current price of US$1.81 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Drive Shack insiders decided to buy shares at close to current prices.
Drive Shack insiders may have bought shares in the last year, but they didn't sell any. 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
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Drive Shack insiders own 11% of the company, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Drive Shack Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. 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 Drive Shack we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Drive Shack. For instance, we've identified 2 warning signs for Drive Shack (1 makes us a bit uncomfortable) you should be aware of.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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