In the last year, multiple insiders have substantially increased their holdings of The Star Entertainment Group Limited (ASX:SGR) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Star Entertainment Group

Star Entertainment Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Bruce Mathieson for AU$283m worth of shares, at about AU$2.98 per share. That means that even when the share price was higher than AU$0.52 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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. We note that Bruce Mathieson was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid AU$312m for 170.95m shares. But insiders sold 280.00k shares worth AU$400k. In the last twelve months there was more buying than selling by Star Entertainment Group insiders. They paid about AU$1.82 on average. 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! insider-trading-volume

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 freelist of companies. (Hint: insiders have been buying them).



Insiders At Star Entertainment Group Have Bought Stock Recently

We saw some Star Entertainment Group insider buying shares in the last three months. Independent Non-Executive Chairman David Foster purchased AU$20k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Star Entertainment Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Star Entertainment Group insiders own about AU$115m worth of shares. That equates to 7.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Star Entertainment Group Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Star Entertainment Group insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Star Entertainment Group. Our analysis shows 2 warning signs for Star Entertainment Group (1 is concerning!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist 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.