Investors who take an interest in Lions Gate Entertainment Corp. (NYSE:LGF.A) should definitely note that the CEO & Director, Jon Feltheimer, recently paid US$9.12 per share to buy US$456k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 13%.
The Last 12 Months Of Insider Transactions At Lions Gate Entertainment
Over the last year, we can see that the biggest insider purchase was by insider John Harkey for US$852k worth of shares, at about US$8.52 per share. Even though the purchase was made at a significantly lower price than the recent price (US$9.96), we still think insider buying is a positive. 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.
In the last twelve months Lions Gate Entertainment 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Lions Gate Entertainment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Lions Gate Entertainment
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Lions Gate Entertainment insiders own 3.8% of the company, worth about US$87m. 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 Lions Gate Entertainment Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Lions Gate 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. Every company has risks, and we've spotted 2 warning signs for Lions Gate Entertainment you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.