Yahoo Finance How Much Are Cinemark Holdings, Inc. (NYSE:CNK) Insiders Taking Off The Table?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Cinemark Holdings, Inc. (NYSE:CNK), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Cinemark Holdings
Cinemark Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when CFO & COO Sean Gamble sold US$305k worth of shares at a price of US$40.90 per share. So we know that an insider sold shares at around the present share price of US$39.99. They might be selling for a variety of reasons, but it's hard to argue this is a bullish sign. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price. Sean Gamble was the only individual insider to sell over the last year.
The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Cinemark Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cinemark Holdings insiders own about US$439m worth of shares (which is 9.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Cinemark Holdings Insiders?
The fact that there have been no Cinemark Holdings insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Cinemark Holdings insiders selling. Of course, the future is what matters most. So if you are interested in Cinemark Holdings, you should check out this free report on analyst forecasts for the company.
But note: Cinemark 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
