Mgm Resorts Intl Insider Sold $1.8M In Company Stock

Ian Corey Sanders, Chief Operating Officer at Mgm Resorts Intl MGM, made a large insider sell on October 1, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that Sanders sold 40,000 shares of Mgm Resorts Intl at a price of $44.15. The total transaction amounted to $1,766,164.

Following the transaction, Sanders still owns 325,751 shares of Mgm Resorts Intl worth $14,630,910.

Mgm Resorts Intl shares are trading up 0.91% at $44.91 at the time of this writing on Tuesday morning.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Mgm Resorts Intl's Insider Trades.