Independent Lead Director of Lucky Strike Entertainment John Young Buys 1.1% More Shares
Those following along with Lucky Strike Entertainment Corporation (NYSE:LUCK) will no doubt be intrigued by the recent purchase of shares by John Young, Independent Lead Director of the company, who spent a stonking US$614k on stock at an average price of US$614. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.1%.
Lucky Strike Entertainment Insider Transactions Over The Last Year
In fact, the recent purchase by John Young was the biggest purchase of Lucky Strike Entertainment shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.24). 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 106.08k shares for US$1.4m. On the other hand they divested 3.00k shares, for US$25k. In the last twelve months there was more buying than selling by Lucky Strike Entertainment insiders. They paid about US$13.51 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Lucky Strike Entertainment
Lucky Strike Entertainment is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Lucky Strike Entertainment 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. Insiders own 6.4% of Lucky Strike Entertainment shares, worth about US$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Lucky Strike Entertainment Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Lucky Strike Entertainment we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lucky Strike Entertainment. For example, Lucky Strike Entertainment has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course Lucky Strike Entertainment may not be the best stock to buy. So you may wish to see this free collection of high quality 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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