- Oops!Something went wrong.Please try again later.
Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a US$36m rise in the company's market capitalisation. In other words, the original US$16m purchase is now worth US$38m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Hall of Fame Resort & Entertainment Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Stuart Lichter bought US$15m worth of shares at a price of US$1.40 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.36. 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.
Hall of Fame Resort & Entertainment insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and 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 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.
Hall of Fame Resort & Entertainment Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Hall of Fame Resort & Entertainment. Specifically, Chairman Michael Crawford bought US$58k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Hall of Fame Resort & Entertainment insiders own 20% of the company, worth about US$57m. 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 Does This Data Suggest About Hall of Fame Resort & Entertainment Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Hall of Fame Resort & Entertainment shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Hall of Fame Resort & Entertainment (2 are concerning!) that we believe deserve your full attention.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.