This Insider Has Just Sold Shares In Lionsgate Studios

Some Lionsgate Studios Corp. (NYSE:LION) shareholders may be a little concerned to see that the CEO & Director, Jon Feltheimer, recently sold a substantial US$1.6m worth of stock at a price of US$8.28 per share. However, that sale only accounted for 8.2% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Lionsgate Studios

In fact, the recent sale by Jon Feltheimer was the biggest sale of Lionsgate Studios shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$9.25). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 8.2% of Jon Feltheimer's holding.

Over the last year, we can see that insiders have bought 63.50k shares worth US$814k. But they sold 241.75k shares for US$2.0m. In total, Lionsgate Studios insiders sold more than they bought over the last year. They sold for an average price of about US$8.37. We don't gain confidence from insider selling near the recent share price. But we don't put too much weight on the insider selling, since sellers could have personal reasons. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Lionsgate Studios

I will like Lionsgate Studios 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.

Insider Ownership Of Lionsgate Studios

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Lionsgate Studios insiders own about US$104m worth of shares (which is 3.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Lionsgate Studios Tell Us?

The insider sales have outweighed the insider buying, at Lionsgate Studios, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. Our analysis shows 2 warning signs for Lionsgate Studios (1 is concerning!) and we strongly recommend you look at them before investing.

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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.