Investors who take an interest in Hilton Worldwide Holdings Inc. (NYSE:HLT) should definitely note that the Independent Director, Melanie Healey, recently paid US$200 per share to buy US$399k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Hilton Worldwide Holdings Insider Transactions Over The Last Year
The President, Christopher Nassetta, made the biggest insider sale in the last 12 months. That single transaction was for US$4.3m worth of shares at a price of US$194 each. That means that an insider was selling shares at slightly below the current price (US$200). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 0.7% of Christopher Nassetta's holding.
In total, Hilton Worldwide Holdings insiders sold more 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership Of Hilton Worldwide Holdings
For a common shareholder, it is worth checking how many shares are held by company 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. Hilton Worldwide Holdings insiders own about US$856m worth of shares (which is 1.7% of the company). 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 Does This Data Suggest About Hilton Worldwide Holdings Insiders?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Hilton Worldwide Holdings insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Hilton Worldwide Holdings (including 1 which shouldn't be ignored).
Of course Hilton Worldwide Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
