Madison Square Garden Entertainment Insider Lowered Holding By 33% During Last Year

From what we can see, insiders were net sellers in Madison Square Garden Entertainment Corp.'s (NYSE:MSGE ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 2 warning signs about Madison Square Garden Entertainment. View them for free.

The Last 12 Months Of Insider Transactions At Madison Square Garden Entertainment

The Executive VP & Treasurer, Philip D’Ambrosio, made the biggest insider sale in the last 12 months. That single transaction was for US$255k worth of shares at a price of US$42.43 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$31.32). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Philip D’Ambrosio.

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!

See our latest analysis for Madison Square Garden Entertainment

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Madison Square Garden Entertainment

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Madison Square Garden Entertainment insiders own about US$32m worth of shares. That equates to 2.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Madison Square Garden Entertainment Insiders?

It doesn't really mean much that no insider has traded Madison Square Garden Entertainment shares in the last quarter. Still, the insider transactions at Madison Square Garden Entertainment in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Madison Square Garden Entertainment you should know about.

But note: Madison Square Garden Entertainment may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.