We'd be surprised if Travelzoo (NASDAQ:TZOO) shareholders haven't noticed that the Founder & Chief Talent Officer, Ralph Bartel, recently sold US$338k worth of stock at US$8.44 per share. However, the silver lining is that the sale only reduced their total holding by 0.8%, so we're hesitant to read anything much into it, on its own.
Travelzoo Insider Transactions Over The Last Year
Notably, that recent sale by Founder & Chief Talent Officer Ralph Bartel was not the only time they sold Travelzoo shares this year. They previously made an even bigger sale of -US$1.4m worth of shares at a price of US$9.13 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$7.89. So it may not tell us anything about how insiders feel about the current share price.
Ralph Bartel sold a total of 2.48m shares over the year at an average price of US$8.13. 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!
I will like Travelzoo better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Travelzoo
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Travelzoo insiders own 44% of the company, currently worth about US$45m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Travelzoo Tell Us?
An insider hasn't bought Travelzoo 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 it is good to see that Travelzoo is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Travelzoo has 1 warning sign we think you should be aware of.
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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