Trade Alert: EW Scripps (NASDAQ: SSP) Senior Vice President of Financial Strategy and Special Projects Douglas Lyons sold some shares recently
Anyone interested in EW Scripps Company (NASDAQ: SSP) should probably know that senior vice president of financial strategy and special projects, Douglas Lyons, recently sold US $ 198,000 of shares in the company, at an average price of $ 20.92. US each. In particular, we note that the sale was equivalent to a 100% reduction in their position size, which doesn’t really inspire confidence.
EW Scripps Insider Transactions in the Past Year
In the past year or so, we can see that the biggest insider sale has come from insider Richard Boehne for $ 2.4 million in shares, at around $ 24.30 per share. We generally don’t like to see insider sales, but the lower the selling price, the more it concerns us. The good news is that this big sale was well above the current price of US $ 20.40. So this may not tell us anything about what insiders think about the current share price.
In total, insiders have sold more shares of EW Scripps than they have bought in the past year. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
NasdaqGS: SSP Insider Trading Volume November 13, 2021
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Does EW Scripps pride themselves on strong insider ownership?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. It’s great to see that EW Scripps insiders own 32% of the company, worth around $ 531 million. I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what do EW Scripps insider trading indicate?
Insiders recently sold EW Scripps shares, but they haven’t bought any. And our longer-term analysis of insider trading did not provide confidence either. But it is good to see that EW Scripps is increasing its profits. The company prides itself on having a high insider participation, but we’re a little hesitant, given the history of share sales. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Every business has risks, and we have spotted 3 warning signs for EW Scripps (1 of which doesn’t suit us very well!) you should know that.
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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