Insider Spends US$456k Buying More Shares In Lions Gate Entertainment
Investors who take an interest in Lions Gate Entertainment Corp. (NYSE:LGF.A) should definitely note that the CEO & Director, Jon Feltheimer, recently paid US$9.12 per share to buy US$456k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
See our latest analysis for Lions Gate Entertainment
Lions Gate Entertainment Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider John Harkey bought US$852k worth of shares at a price of US$8.52 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$9.96. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Lions Gate Entertainment insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Lions Gate Entertainment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Insiders own 3.8% of Lions Gate Entertainment shares, worth about US$87m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Lions Gate Entertainment Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Lions Gate Entertainment insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Lions Gate Entertainment.
But note: Lions Gate 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.
