Bullish NorthStar Gaming Holdings Insider Buying Worth CA$15.9m Yet To Pay Off
The recent 28% drop in NorthStar Gaming Holdings Inc.'s (CVE:BET) stock could come as a blow to insiders who purchased CA$15.9m worth of stock at an average buy price of CA$0.49 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$2.12m, which is not great.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for NorthStar Gaming Holdings
The Last 12 Months Of Insider Transactions At NorthStar Gaming Holdings
The insider Jordan Bitove made the biggest insider purchase in the last 12 months. That single transaction was for CA$16m worth of shares at a price of CA$0.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.065). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
NorthStar Gaming Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NorthStar Gaming Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At NorthStar Gaming Holdings Have Bought Stock Recently
There was some insider buying at NorthStar Gaming Holdings over the last quarter. Insiders purchased CA$56k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 38% of NorthStar Gaming Holdings shares, worth about CA$5.2m. 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 NorthStar Gaming Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of NorthStar Gaming Holdings we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 3 warning signs for NorthStar Gaming Holdings you should be aware of, and 2 of these shouldn't be ignored.
But note: NorthStar Gaming Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.