Yahoo Finance Insider Buying: The Six Flags Entertainment Corporation (NYSE:SIX) CFO & Interim Controller Just Bought 67% More Shares
Investors who take an interest in Six Flags Entertainment Corporation (NYSE:SIX) should definitely note that the CFO & Interim Controller, Gary Mick, recently paid US$22.12 per share to buy US$155k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 67%.
See our latest analysis for Six Flags Entertainment
The Last 12 Months Of Insider Transactions At Six Flags Entertainment
Over the last year, we can see that the biggest insider purchase was by CEO, President & Executive Director Selim Bassoul for US$4.4m worth of shares, at about US$38.64 per share. That means that even when the share price was higher than US$22.31 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Six Flags Entertainment insiders bought shares during the last year, they didn't sell. 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!
Six Flags Entertainment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Six Flags Entertainment
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. Six Flags Entertainment insiders own about US$18m worth of shares. That equates to 1.0% of the company. 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 Six Flags Entertainment Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Six Flags Entertainment insiders are well aligned, and that they may think the share price is too low. 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 Six Flags Entertainment you should be aware of, and 2 of them are significant.
But note: Six Flags Entertainment 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, but not derivative transactions.
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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.
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