We’d be surprised if MGM Growth Properties LLC (NYSE:MGP) shareholders haven’t noticed that the Independent Director, Daniel Taylor, recently sold US$208k worth of stock at US$34.77 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn’t exactly instill confidence.
See our latest analysis for MGM Growth Properties
MGM Growth Properties Insider Transactions Over The Last Year
Notably, that recent sale by Daniel Taylor is the biggest insider sale of MGM Growth Properties shares that we’ve seen in the last year. That means that an insider was selling shares at below the current price (US$35.02). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was 100% of Daniel Taylor’s stake.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:MGP Insider Trading Volume May 18th 2021
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Does MGM Growth Properties Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of MGM Growth Properties shares, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At MGM Growth Properties Tell Us?
An insider sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. But since MGM Growth Properties is profitable and growing, we’re not too worried by this. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, MGM Growth Properties has 3 warning signs (and 1 which shouldn’t be ignored) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
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