The Chief Financial Officer of Lions Gate Entertainment Corp. (NYSE:LGF.A), James Barge, Just Bought 145% More Shares
Investors who take an interest in Lions Gate Entertainment Corp. (NYSE:LGF.A) should definitely note that the Chief Financial Officer, James Barge, recently paid US$5.69 per share to buy US$307k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 145%, potentially signalling some real optimism.
See our latest analysis for Lions Gate Entertainment
Lions Gate Entertainment Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Harry Sloan for US$353k worth of shares, at about US$7.06 per share. That means that even when the share price was higher than US$6.19 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 Lions Gate Entertainment insiders bought shares during the last year, they didn't sell. They paid about US$6.12 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!
Lions Gate Entertainment is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Lions Gate Entertainment
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.2% of Lions Gate Entertainment shares, worth about US$44m. 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 Lions Gate Entertainment Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Lions Gate 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. While conducting our analysis, we found that Lions Gate Entertainment has 2 warning signs and it would be unwise to ignore them.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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