Insiders were net sellers of Red Rock Resorts, Inc.'s (NASDAQ:RRR ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Red Rock Resorts

In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO, Kord Nichols, sold US$2.3m worth of shares at a price of US$61.03 per share. So what is clear is that an insider saw fit to sell at around the current price of US$60.98. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Kord Nichols.

Kord Nichols sold a total of 42.33k shares over the year at an average price of US$61.02. 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!

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Insiders At Red Rock Resorts Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Red Rock Resorts. In total, Executive VP & COO Kord Nichols dumped US$2.6m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Red Rock Resorts Boast High Insider Ownership?

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. It's great to see that Red Rock Resorts insiders own 11% of the company, worth about US$672m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Red Rock Resorts Insider Transactions Indicate?

An insider hasn't bought Red Rock Resorts stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Red Rock Resorts makes money, and is growing profits. 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 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.

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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.

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.