Yahoo Finance Bullish Drive Shack Inc. (NYSE:DS) insiders filled their treasuries with US$5.3m worth of stock over last year
Over the last year, a good number of insiders have significantly increased their holdings in Drive Shack Inc. (NYSE:DS). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Drive Shack
Drive Shack Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Wesley Edens for US$3.0m worth of shares, at about US$1.67 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.62). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Drive Shack insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$1.31. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Drive Shack is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Drive Shack insiders own about US$7.4m worth of shares (which is 13% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Drive Shack Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Drive Shack insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Drive Shack. Every company has risks, and we've spotted 5 warning signs for Drive Shack (of which 2 are concerning!) you should know about.
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.
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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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