Non-Executive Chair Michael Burns Sold A Bunch Of Shares In Starz Entertainment
Some Starz Entertainment Corp. (NASDAQ:STRZ) shareholders may be a little concerned to see that the Non-Executive Chair, Michael Burns, recently sold a substantial US$2.1m worth of stock at a price of US$10.94 per share. That diminished their holding by a very significant 71%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Starz Entertainment
Notably, that recent sale by Michael Burns is the biggest insider sale of Starz Entertainment shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.12. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 71% of Michael Burns's stake.
In the last twelve months insiders purchased 84.80k shares for US$1.1m. But insiders sold 282.50k shares worth US$3.1m. Michael Burns divested 282.50k shares over the last 12 months at an average price of US$11.01. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Starz Entertainment
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Insider Ownership Of Starz Entertainment
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Starz Entertainment insiders own about US$5.7m worth of shares (which is 2.8% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Starz Entertainment Insider Transactions Indicate?
The stark truth for Starz Entertainment is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! While it's good to be aware of 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. In terms of investment risks, we've identified 2 warning signs with Starz Entertainment and understanding them should be part of your investment process.
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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 of direct interests only, but not derivative transactions or indirect interests.
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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.