Yahoo Finance How Much Are Penn National Gaming, Inc. (NASDAQ:PENN) Insiders Spending On Buying Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Penn National Gaming, Inc. (NASDAQ:PENN).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for Penn National Gaming
Penn National Gaming Insider Transactions Over The Last Year
CEO & Director Timothy Wilmott made the biggest insider purchase in the last 12 months. That single transaction was for US$3.1m worth of shares at a price of US$30.85 each. That means that an insider was happy to buy shares at above the current price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid US$3.5m for 115.01k shares purchased. In total, Penn National Gaming insiders bought more than they sold over the last year. Their average price was about US$30.20. These transactions suggest that insiders have considered the current price of US$25.14 attractive. You can see the insider transactions (by 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!
Penn National Gaming 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 Penn National Gaming Have Bought Stock Recently
There was some insider buying at Penn National Gaming over the last quarter. Director Ronald Naples shelled out US$45k for shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
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. We usually like to see fairly high levels of insider ownership. It’s great to see that Penn National Gaming insiders own 6.1% of the company, worth about US$182m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Penn National Gaming Insider Transactions Indicate?
We note a that there has been a tad more insider buying than selling, recently. But the difference isn’t much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Penn National Gaming insiders think the business has merit. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Penn National Gaming.
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 editorial-team@simplywallst.com. 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.
