Anyone interested in Full House Resorts, Inc. (NASDAQ:FLL) should probably be aware that the President, Daniel Lee, recently divested US$474k worth of shares in the company, at an average price of US$5.02 each. However, the silver lining is that the sale only reduced their total holding by 6.5%, so we're hesitant to read anything much into it, on its own.
Full House Resorts Insider Transactions Over The Last Year
Notably, that recent sale by Daniel Lee is the biggest insider sale of Full House Resorts shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$5.08. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.5% of Daniel Lee's holding.
Happily, we note that in the last year insiders paid US$247k for 51.00k shares. But insiders sold 138.66k shares worth US$699k. Over the last year we saw more insider selling of Full House Resorts shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.8% of Full House Resorts shares, worth about US$12m. 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 Do The Full House Resorts Insider Transactions Indicate?
The stark truth for Full House Resorts is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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. You'd be interested to know, that we found 3 warning signs for Full House Resorts and we suggest you have a look.
Of course Full House Resorts 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.