Insiders who purchased Planet Fitness, Inc. (NYSE:PLNT) shares in the past 12 months are unlikely to be deeply impacted by the stock's 7.0% decline over the past week. Even after accounting for the recent loss, the US$69k worth of stock purchased by them is now worth US$75k or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Planet Fitness
The Chief Financial Officer Thomas Fitzgerald made the biggest insider purchase in the last 12 months. That single transaction was for US$69k worth of shares at a price of US$69.29 each. So it's clear an insider wanted to buy, at around the current price, which is US$74.71. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Thomas Fitzgerald was the only individual insider to buy during the last year.
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!
Planet Fitness is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Planet Fitness
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Planet Fitness insiders own 0.2% of the company, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Planet Fitness Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Planet Fitness shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Planet Fitness and we see no evidence to suggest they are worried about the future. 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. For instance, we've identified 3 warning signs for Planet Fitness (2 shouldn't be ignored) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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