Insiders who bought US$539.4k worth of Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) stock in the last year have seen some of their losses recouped as the stock gained 10% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$490k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Chicken Soup for the Soul Entertainment

The Last 12 Months Of Insider Transactions At Chicken Soup for the Soul Entertainment

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO William Rouhana for US$499k worth of shares, at about US$2.30 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.21). 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.

Chicken Soup for the Soul Entertainment insiders may have bought shares in the last year, but they didn't sell any. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Chicken Soup for the Soul Entertainment

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Chicken Soup for the Soul Entertainment insiders have about 4.5% of the stock, worth approximately US$303k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Do The Chicken Soup for the Soul Entertainment Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Chicken Soup for the Soul Entertainment shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Chicken Soup for the Soul Entertainment insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Chicken Soup for the Soul Entertainment is showing 6 warning signs in our investment analysis, and 4 of those are a bit unpleasant...

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.