It is not 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 before you buy or sell DISH Network Corporation (NASDAQ:DISH), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for DISH Network
The Last 12 Months Of Insider Transactions At DISH Network
The Investor Relations Contact & Treasurer, Kyle Kiser, made the biggest insider sale in the last 12 months. That single transaction was for US$147k worth of shares at a price of US$32.72 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$34.43. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 22% of Kyle Kiser's holding. The only individual insider seller over the last year was Kyle Kiser.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like DISH Network better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does DISH Network Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that DISH Network insiders own 16% of the company, worth about US$2.9b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At DISH Network Tell Us?
It doesn't really mean much that no insider has traded DISH Network shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of DISH Network insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DISH Network. To that end, you should learn about the 2 warning signs we've spotted with DISH Network (including 1 which is potentially serious).
But note: DISH Network may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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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"dish" - Google News
March 11, 2021 at 03:07AM
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DISH Network Corporation (NASDAQ:DISH) Insiders Have Been Selling - Simply Wall St
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