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Insiders who bought US$260k worth of Live Nation Entertainment, Inc. (NYSE:LYV) stock in the last year have seen some of their losses recouped as the stock gained 6.8% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$23k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Live Nation Entertainment Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director James Kahan bought US$260k worth of shares at a price of US$100 per share. That means that an insider was happy to buy shares at above the current price of US$91.16. 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 always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was James Kahan.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Live Nation Entertainment is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Live Nation Entertainment Have Bought Stock Recently
There was some insider buying at Live Nation Entertainment over the last quarter. Independent Director James Kahan bought US$260k worth of shares in that time. On the other hand, Chief Accounting Officer & Senior VP Brian Capo sold US$212k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
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. Live Nation Entertainment insiders own 2.1% of the company, currently worth about US$443m based on the recent share price. 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 Do The Live Nation Entertainment Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Live Nation Entertainment insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Live Nation Entertainment.
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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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.