The recent 12% drop in DISH Network Corporation's (NASDAQ:DISH) stock could come as a blow to insiders who purchased US$64m worth of stock at an average buy price of US$14.72 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$34m, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for DISH Network
The Last 12 Months Of Insider Transactions At DISH Network
Over the last year, we can see that the biggest insider purchase was by Co-Founder James DeFranco for US$24m worth of shares, at about US$20.63 per share. That means that even when the share price was higher than US$7.84 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months DISH Network insiders were buying shares, but not selling. The average buy price was around US$14.72. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
DISH Network Insiders Bought Stock Recently
Over the last quarter, DISH Network insiders have spent a meaningful amount on shares. Specifically, Co-Founder James DeFranco bought US$25m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does DISH Network Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that DISH Network insiders own 17% of the company, worth about US$698m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The DISH Network Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about DISH Network. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 3 warning signs for DISH Network and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
What are the risks and opportunities for DISH Network?
DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States.
Rewards
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Trading at 80.9% below our estimate of its fair value
Risks
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Earnings are forecast to decline by an average of 55.2% per year for the next 3 years
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Debt is not well covered by operating cash flow
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High level of non-cash earnings
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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.
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April 17, 2023 at 10:23PM
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Having purchased US$64m worth of DISH Network Corporation (NASDAQ:DISH) stock, the recent 12% pullback is not what insiders may have expected - Simply Wall St
"dish" - Google News
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