Red Rock Resorts Insiders Added US$3.30m Of Stock To Their Holdings
Over the last year, a good number of insiders have significantly increased their holdings in Red Rock Resorts, Inc. (NASDAQ:RRR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Red Rock Resorts
The Last 12 Months Of Insider Transactions At Red Rock Resorts
Notably, that recent purchase by Jeffrey Welch is the biggest insider purchase of Red Rock Resorts shares that we've seen in the last year. That means that even when the share price was higher than US$57.66 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Red Rock Resorts insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Red Rock Resorts is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Red Rock Resorts Insiders Bought Stock Recently
It's good to see that Red Rock Resorts insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$3.3m worth of shares. This makes one think the business has some good points.
Does Red Rock Resorts Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Red Rock Resorts insiders own 9.0% of the company, currently worth about US$539m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Red Rock Resorts Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Red Rock Resorts insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Red Rock Resorts. Our analysis shows 2 warning signs for Red Rock Resorts (1 is concerning!) and we strongly recommend you look at them before investing.
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 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.
