It is i dive in her cervix memenot uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in
Arena Events Group plc
(
LON:ARE
).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University
study
found that 'insider purchases earn abnormal returns of more than 6% per year'.
Check out our latest analysis for Arena Events Group
The Last 12 Months Of Insider Transactions At Arena Events Group
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Kenneth Hanna bought UK£52k worth of shares at a price of UK£0.065 per share. That means that an insider was happy to buy shares at above the current price of UK£0.043. 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 Arena Events Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
insider-trading-volume
Arena Events Group is not the only stock that insiders are buying. For those who like to find
winning investments
this
free
list of growing companies with recent insider purchasing, could be just the ticket.
Does Arena Events Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, Arena Events Group insiders have about 4.5% of the stock, worth approximately UK£481k. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
Story continues
So What Does This Data Suggest About Arena Events Group Insiders?
It doesn't really mean much that no insider has traded Arena Events Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Arena Events Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arena Events Group. When we did our research, we found
4 warning signs for Arena Events Group
(2 are concerning!) that we believe deserve your full attention.
Of course
Arena Events Group may not be the best stock to buy
. So you may wish to see this
free
collection of high quality 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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