The recent price decline of 25% in DISH Network Corporation's (NASDAQ:DISH) stock may have disappointed insiders who bought US$44.9m worth of shares at an average price of US$8.10 in 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$20.3m, 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.
See our latest analysis for DISH Network
DISH Network Insider Transactions Over The Last Year
The Co-Founder James DeFranco made the biggest insider purchase in the last 12 months. That single transaction was for US$19m worth of shares at a price of US$6.23 each. That means that even when the share price was higher than US$3.65 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was James DeFranco.
James DeFranco purchased 5.55m shares over the year. The average price per share was US$8.10. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Have DISH Network Insiders Traded Recently?
In the last quarter Executive VP & CFO Paul Orban sold US$385 worth of equity. That's not a lot. Ultimately the overall selling isn't enough to tell us much.
Insider Ownership Of DISH Network
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that DISH Network insiders own 16% of the company, worth about US$303m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About DISH Network Insiders?
We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, DISH Network insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that DISH Network has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
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 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.
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November 10, 2023 at 12:35AM
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Insiders Who Purchased US$44.9m Of DISH Network Stock May Not Have Expected 25% Tumble - Yahoo Finance
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