We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Global Eagle Entertainment Inc. (NASDAQ:ENT).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Global Eagle Entertainment
Global Eagle Entertainment Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Jeffrey Leddy bought US$216k worth of shares at a price of US$0.54 per share. We do like to see buying, but this purchase was made at well below the current price of US$0.87. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders paid US$499k for 816k shares purchased. While Global Eagle Entertainment insiders bought shares last year, they didn't sell. Their average price was about US$0.61. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Global Eagle Entertainment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Global Eagle Entertainment Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Global Eagle Entertainment. Overall, two insiders shelled out US$64k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.