Last week, Six Flags Entertainment Corporation (NYSE:SIX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 8.8% last week, resulting in a US$178m increase in the company's market worth. As a result, their original purchase of US$756k worth of stock is now worth US$902k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Six Flags Entertainment
Six Flags Entertainment Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP Gary Mick bought US$207k worth of shares at a price of US$22.28 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$26.52. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Gary Mick bought 34.00k shares over the last 12 months at an average price of US$22.22. 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!
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.
Does Six Flags Entertainment Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Six Flags Entertainment insiders own about US$19m worth of shares. That equates to 0.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Six Flags Entertainment Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Six Flags Entertainment and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Six Flags Entertainment and we suggest you have a look.
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.