AMC Networks Inc.'s (NASDAQ:AMCX) stock price has dropped 12% in the previous week, but insiders who sold US$1.8m in stock over the past year have had less luck.  The average selling price of US$18.38 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.    

While insider transactions are not the most important thing when it comes to long-term investing,  we do think it is perfectly logical to keep tabs on what insiders are doing.

AMC Networks Insider Transactions Over The Last Year

The Independent Director, Matthew Blank, made the biggest insider sale in the last 12 months. That single transaction was for US$955k worth of shares at a price of US$19.09 each.   We generally don't like to see insider selling, but the lower the sale price, the more it concerns us.  The silver lining is that this sell-down took place above the latest price (US$10.02).  So it is hard to draw any strong conclusion from it.  

AMC Networks insiders didn't buy any shares over the last year.    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!

NasdaqGS:AMCX Insider Trading Volume April 17th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.   Insiders own 4.8% of AMC Networks shares, worth about US$21m.  This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.  

So What Do The AMC Networks Insider Transactions Indicate?

The fact that there have been no AMC Networks insider transactions recently certainly doesn't bother us.      Our analysis of AMC Networks insider transactions leaves us cautious.   But it's good to see that insiders own shares in the company.      While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.     At Simply Wall St, we've found that AMC Networks has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.  

Of course AMC Networks may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.