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Insiders were net buyers of Allied Gaming & Entertainment Inc.'s (NASDAQ:AGAE ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Allied Gaming & Entertainment
The Last 12 Months Of Insider Transactions At Allied Gaming & Entertainment
The insider Roy Choi made the biggest insider purchase in the last 12 months. That single transaction was for US$778k worth of shares at a price of US$1.29 each. That means that an insider was happy to buy shares at above the current price of US$1.15. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 Roy Choi.
Roy Choi bought 1.18m shares over the last 12 months at an average price of US$1.31. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Allied Gaming & Entertainment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Allied Gaming & Entertainment insiders own about US$5.0m worth of shares (which is 10% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Allied Gaming & Entertainment Insiders?
It doesn't really mean much that no insider has traded Allied Gaming & Entertainment shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Allied Gaming & Entertainment insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Allied Gaming & Entertainment and understanding these should be part of your investment process.