Yahoo Finance Great news for The ONE Group Hospitality, Inc. (NASDAQ:STKS): Insiders acquired stock in large numbers last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of The ONE Group Hospitality, Inc. (NASDAQ:STKS), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for ONE Group Hospitality
ONE Group Hospitality Insider Transactions Over The Last Year
The Executive Chairman & Director of Business Development Jonathan Segal made the biggest insider purchase in the last 12 months. That single transaction was for US$107k worth of shares at a price of US$5.33 each. Even though the purchase was made at a significantly lower price than the recent price (US$7.46), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months ONE Group Hospitality insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of ONE Group Hospitality
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. ONE Group Hospitality insiders own about US$58m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About ONE Group Hospitality Insiders?
It doesn't really mean much that no insider has traded ONE Group Hospitality shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think ONE Group Hospitality insiders are doubting the company, and they do own shares. 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. Be aware that ONE Group Hospitality is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
Of course ONE Group Hospitality may not be the best stock to buy. So you may wish to see this free collection of high quality 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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