We wouldn't blame Royal Caribbean Cruises Ltd. (NYSE:RCL) shareholders if they were a little worried about the fact that Richard Fain, the Chairman recently netted about US$9.2m selling shares at an average price of US$209. However, that sale only accounted for 8.2% of their holding, so arguably it doesn't say much about their conviction.
Royal Caribbean Cruises Insider Transactions Over The Last Year
Notably, that recent sale by Richard Fain is the biggest insider sale of Royal Caribbean Cruises shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$202. 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.
Over the last year we saw more insider selling of Royal Caribbean Cruises shares, than buying. 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 Royal Caribbean Cruises
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Royal Caribbean Cruises insiders own 0.4% of the company, currently worth about US$206m 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.
So What Do The Royal Caribbean Cruises Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Royal Caribbean Cruises makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Royal Caribbean Cruises. Every company has risks, and we've spotted 3 warning signs for Royal Caribbean Cruises (of which 1 shouldn't be ignored!) you should know about.
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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.
