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So take a peek at this free list of interesting companies.įor the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. Of course, you might find a fantastic investment by looking elsewhere. For instance, we've identified 3 warning signs for Drive Shack (1 is significant) you should be aware of. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Given that insiders also own a fair bit of Drive Shack we think they are probably pretty confident of a bright future. But on the other hand, the company made a loss during the last year, which makes us a little cautious. And an analysis of the transactions over the last year also gives us confidence. The recent insider purchases are heartening. So What Do The Drive Shack Insider Transactions Indicate?
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We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. Insiders own 13% of Drive Shack shares, worth about US$18m. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Story continues Insider Ownership of Drive ShackĪnother way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 our view, the price an insider pays for shares is very important. Their view may have changed since then, but at least it shows they felt optimistic at the time. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.54). In the last twelve months, the biggest single purchase by an insider was when Chairman Wesley Edens bought US$3.0m worth of shares at a price of US$1.67 per share. See our latest analysis for Drive Shack Drive Shack Insider Transactions Over The Last Year As a result, the stock they originally bought for US$5.3m is now worth US$6.2m.Īlthough 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. The company's market value increased by US$20m as a result of the stock's 17% gain over the same period. ( NYSE:DS) stock in the last 12 months were richly rewarded last week.