Some Travelzoo (NASDAQ:TZOO) shareholders may be a little concerned to see that the Global CEO & Director, Holger Bartel, recently sold a substantial US$978k worth of stock at a price of US$12.23 per share. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Travelzoo
The Founder & Chief Talent Officer, Ralph Bartel, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$9.13 each. That means that an insider was selling shares at slightly below the current price (US$12.18). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 2.7% of Ralph Bartel's stake.
Insiders in Travelzoo didn't buy any shares in 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 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Travelzoo insiders own 44% of the company, currently worth about US$65m 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?
Insiders sold Travelzoo shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Travelzoo is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Travelzoo and understanding it should be part of your investment process.
But note: Travelzoo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
