Even if it's not a huge purchase, we think it was good to see that John Young, the Independent Lead Director of Lucky Strike Entertainment Corporation (NYSE:LUCK) recently shelled out US$57k to buy stock, at US$3.80 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.
Lucky Strike Entertainment Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Lead Director John Young was not the only time they bought Lucky Strike Entertainment shares this year. Earlier in the year, they paid US$614 per share in a US$614k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.12). 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. 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.
In the last twelve months insiders purchased 157.04k shares for US$1.6m. On the other hand they divested 16.00k shares, for US$76k. In total, Lucky Strike Entertainment insiders bought more than they sold over the last year. Their average price was about US$10.48. I'd consider this a positive as it suggests insiders see value at around the current 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!
See our latest analysis for Lucky Strike Entertainment
Lucky Strike Entertainment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Lucky Strike Entertainment Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It appears that Lucky Strike Entertainment insiders own 6.5% of the company, worth about US$28m. 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 Do The Lucky Strike 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 we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Lucky Strike Entertainment we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Lucky Strike Entertainment has 1 warning sign and it would be unwise to ignore this.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.