We wouldn't blame Las Vegas Sands Corp. (NYSE:LVS) shareholders if they were a little worried about the fact that Robert Goldstein, the Chairman recently netted about US$6.4m selling shares at an average price of US$53.73. Probably the most concerning element of the whole transaction is that the disposal amounted to 59% of their entire holding.
The Last 12 Months Of Insider Transactions At Las Vegas Sands
Over the last year, we can see that the biggest insider sale was by the insider, Miriam Adelson, for US$2.0b worth of shares, at about US$43.23 per share. That means that an insider was selling shares at slightly below the current price (US$51.73). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 18% of Miriam Adelson's holding.
Insiders in Las Vegas Sands didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Las Vegas Sands better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. It's great to see that Las Vegas Sands insiders own 24% of the company, worth about US$9.0b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Las Vegas Sands Tell Us?
An insider sold Las Vegas Sands shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Las Vegas Sands is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. In terms of investment risks, we've identified 3 warning signs with Las Vegas Sands and understanding these should be part of your investment process.
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 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.
