investors interested in it Six Flags Entertainment Corporation (NYSE:SIX) should note that CFO & interim controller, Gary Mick, recently paid $22.12 per share to buy $155,000 worth of shares. We think that’s a good sign, especially given that the acquisition has seen its stake increase by 67%.
Check out our latest analysis for Six Flags Entertainment
The last 12 months of insider transactions at Six Flags Entertainment
Over the past year, we can see that the largest insider buy was CEO, President & Executive Director Selim Bassoul for $4.4 million in shares, at around $38.64 per share. This means that even if the stock price was higher than $22.31 (the last price), an insider wanted to buy shares. Their view may have changed since then, but at least it shows they were optimistic at the time. We always pay close attention to the price that insiders pay when buying shares. It’s generally more encouraging if you’ve paid above the current price, as it indicates you’ve seen value, even at higher levels.
While Six Flags Entertainment insiders bought shares last year, they didn’t sell them. The chart below shows insider transactions (of companies and individuals) over the past year. If you click on the chart you will see all the individual transactions including the stock price, the individual and the date!
Six Flags Entertainment isn’t the only stock insiders are buying. So check this out free List of Growing Insider Buying Companies.
Insider ownership of Six Flags Entertainment
Another way to test the consistency between a company’s executives and other shareholders is to look at how many shares they own. We usually like to see a fairly high level of inside ownership. Six Flags Entertainment insiders own approximately $18 million worth of stock. This corresponds to 1.0% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to indicate an alignment between insiders and the other shareholders.
So what does this data say about Six Flags Entertainment insiders?
It’s good to see the recent insider purchase. And the longer-term insider deals also give us confidence. These factors, combined with notable insider ownership, suggest that Six Flags Entertainment insiders are well positioned and that they may believe the stock price is underpriced. While we like to know what’s going on with the insider’s ownership and transactions, we also consider the risks a stock faces before making an investment decision. Case in point: We discovered it 3 Warning Signs for Six Flags Entertainment You should be aware of this and 2 of them are significant.
But beware: Six Flags Entertainment might not be the best stock to buy. So check this out free List of interesting companies with high ROE and low leverage.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on 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 position in any of the stocks mentioned.
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