Viewing insider transactions for TKO Group Holdings, Inc.'s (NYSE:TKO ) 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 we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At TKO Group Holdings
In the last twelve months, the biggest single sale by an insider was when the insider, Vincent McMahon, sold US$412m worth of shares at a price of US$77.00 per share. That means that even when the share price was below the current price of US$144, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 26% of Vincent McMahon's stake. Vincent McMahon was the only individual insider to sell shares in the last twelve months.
Vincent McMahon divested 8.85m shares over the last 12 months at an average price of US$81.75. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like TKO Group Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of TKO Group Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that TKO Group Holdings insiders own 5.0% of the company, worth about US$1.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About TKO Group Holdings Insiders?
It doesn't really mean much that no insider has traded TKO Group Holdings shares in the last quarter. While we feel good about high insider ownership of TKO Group Holdings, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in TKO Group Holdings, you should check out this free report on analyst forecasts for the company.
But note: TKO Group 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.
