Viewing insider transactions for Monarch Casino & Resort, Inc.'s (NASDAQ:MCRI ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
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.
Monarch Casino & Resort Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Co-Chairman, John Farahi, sold US$206k worth of shares at a price of US$69.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$85.69. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 0.1% of John Farahi's holding. John Farahi was the only individual insider to sell shares in the last twelve months.
John Farahi sold a total of 5.00k shares over the year at an average price of US$68.40. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Monarch Casino & Resort insiders own 31% of the company, currently worth about US$494m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Monarch Casino & Resort Tell Us?
The fact that there have been no Monarch Casino & Resort insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Monarch Casino & Resort insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Monarch Casino & Resort, you should check out this free report on analyst forecasts for the company.
But note: Monarch Casino & Resort 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.
