A number of Travel + Leisure Co. (NYSE:TNL) insiders sold their shares in the last year, which may have raised concerns among investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Travel + Leisure
Travel + Leisure Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President of Panorama & Travel + Leisure Clubs, Olivier Chavy, for US$300k worth of shares, at about US$38.02 per share. So we know that an insider sold shares at around the present share price of US$37.15. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
All up, insiders sold more shares in Travel + Leisure than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Travel + Leisure better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At Travel + Leisure Have Sold Stock Recently
We’ve seen more insider selling than insider buying at Travel + Leisure recently. In that time, insiders dumped US$262k worth of shares. On the other hand we note CEO, President & Director Michael Brown bought US$33k worth of shares , as previously mentioned . Because the selling vastly outweighs the buying, we’d say this is a somewhat bearish sign.
Does Travel + Leisure Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Travel + Leisure insiders own 1.6% of the company, worth about US$43m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Travel + Leisure Insiders?
The insider sales have outweighed the insider buying, at Travel + Leisure, in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. But it is good to see that Travel + Leisure is growing earnings. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d practice some caution before buying! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Travel + Leisure. Case in point: We’ve spotted 3 warning signs for Travel + Leisure you should be aware of, and 1 of these shouldn’t be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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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.
