Insider trader loses $38,000 as PENN Entertainment falls

Insiders bought $98,000 worth of PENN Entertainment’s (NASDAQ: PENN) with an average purchase price of $49.71 last year may be disappointed by the stock’s recent decline of 5.6%. Insiders buy expecting to see their investment appreciate in value over a period of time. However, recent losses make their aforementioned investment worth $60,000 less than ideal.

While insider trading is not the most important thing in long-term investing, we think it would be foolish to ignore insider trading entirely.

Check out our latest analysis for PENN Entertainment

PENN Entertainment Insider Trading Over the Past Year

The largest single purchase by an insider in the past 12 months was independent director Jane Scaccetti buying $98,000 worth of stock at $49.71 apiece. So clearly an insider wants to buy, even at a price higher than the current share price ($30.40). Their views may have changed since then, but at least it shows they were feeling optimistic then. It’s important for us to consider the price insiders are paying for the stock. It’s encouraging to see insiders paying more than the stock’s current price, as it suggests they see value, even at higher levels. Jane Scaccetti was the only individual insider to buy last year.

Below you can see a visual depiction of insider transactions (companies and individuals) over the past 12 months. If you click on the chart, you can see all individual trades including share price, individual and date!

Insiders are always buying a lot of stock.So if that suits your style you can check each stock one by one or you can look at this free List of companies. (Hint: insiders have been buying them).

Does PENN Entertainment have high insider ownership?

Another way to test the alignment between a company’s leaders and other shareholders is to look at how many shares they own. In general, the higher the insider ownership, the more likely the insiders will be motivated to build the company over the long term. Insiders own a 1.9 percent stake in PENN Entertainment, worth about $89 million. While this is a strong but not outstanding level of insider ownership, it is enough to suggest some alignment between management and minority shareholders.

So what do these numbers tell PENN Entertainment Insiders?

There hasn’t been any insider trading in the past three months — which doesn’t mean much. However, our analysis of last year’s transactions is heartening. Insiders own shares of PENN Entertainment, and we see no evidence that they are worried about the future. So while it’s helpful to know what insiders are doing when it comes to buying and selling, it’s also helpful to know what risks a particular company faces.You are interested to know that we found 2 warning signs from PENN Entertainment We recommend you check it out.

But please note: PENN Entertainment Might Not Be the Best Stock. so look at this free List of interesting companies with high return on equity and low debt.

For the purposes of this article, an insider is an individual who reports their transactions to the relevant regulator. We currently consider open market transactions and private dispositions, but not derivatives transactions.

What are the risks and opportunities Penn Entertainment?

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This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.