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In the last year, many Take-Two Interactive Software, Inc. (NASDAQ:TTWO) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
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.
Check out our latest analysis for Take-Two Interactive Software
The Last 12 Months Of Insider Transactions At Take-Two Interactive Software
In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Lainie Goldstein, sold US$8.8m worth of shares at a price of US$179 per share. That means that an insider was selling shares at slightly below the current price (US$209). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 35% of Lainie Goldstein's stake.
Take-Two Interactive Software insiders didn't buy any shares over the last year. 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!
I will like Take-Two Interactive Software better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Take-Two Interactive Software Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Take-Two Interactive Software shares. In total, Executive VP & Chief Legal Officer Daniel Emerson sold US$116k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Take-Two Interactive Software 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. It's great to see that Take-Two Interactive Software insiders own 0.4% of the company, worth about US$143m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.