We wouldn't blame Monarch Casino & Resort, Inc. (NASDAQ:MCRI) shareholders if they were a little worried about the fact that John Farahi, the Co-Chairman recently netted about US$604k selling shares at an average price of US$121. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.2%.

Monarch Casino & Resort Insider Transactions Over The Last Year

The Independent Director, Craig Sullivan, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$106 each. That means that even when the share price was below the current price of US$120, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Craig Sullivan's holding.

Monarch Casino & Resort insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Monarch Casino & Resort insiders own about US$702m worth of shares (which is 33% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Monarch Casino & Resort Insiders?

An insider hasn't bought Monarch Casino & Resort stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Monarch Casino & Resort is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

But note: Monarch Casino & Resort 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.

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.