Over the last year, a good number of insiders have significantly increased their holdings in East Side Games Group Inc. (TSE:EAGR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
East Side Games Group Insider Transactions Over The Last Year
The Executive Chair Jason Bailey made the biggest insider purchase in the last 12 months. That single transaction was for CA$7.5m worth of shares at a price of CA$2.25 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.83). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
East Side Games Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
East Side Games Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have East Side Games Group Insiders Traded Recently?
We saw some East Side Games Group insider buying shares in the last three months. Chief Financial Officer James MacCallum purchased CA$6.8k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of East Side Games Group
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. East Side Games Group insiders own about CA$103m worth of shares (which is 69% of the company). 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 East Side Games Group Insiders?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, East Side Games Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing East Side Games Group. In terms of investment risks, we've identified 2 warning signs with East Side Games Group and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.