It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Gaming and Leisure Properties, Inc. (NASDAQ:GLPI).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
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The Last 12 Months Of Insider Transactions At Gaming and Leisure Properties
In the last twelve months, the biggest single purchase by an insider was when Director Evan Urdang bought US$472k worth of shares at a price of US$33.72 per share. That implies that an insider found the current price of US$39.54 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. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 39000 shares worth US$1.3m. While Gaming and Leisure Properties insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Gaming and Leisure Properties Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Gaming and Leisure Properties. Senior Vice President of Investments Matthew Demchyk spent US$182k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership of Gaming and Leisure Properties
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Gaming and Leisure Properties insiders own about US$503m worth of shares (which is 5.9% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Gaming and Leisure Properties Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Gaming and Leisure Properties. That's what I like to see! Of course, the future is what matters most. So if you are interested in Gaming and Leisure Properties, 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.