We wouldn't blame Hilton Grand Vacations Inc. (NYSE:HGV) shareholders if they were a little worried about the fact that Jorge Brizi, the Executive VP & Chief Human Resources Officer and Corporate Affairs recently netted about US$846k selling shares at an average price of US$42.31. Probably the most concerning element of the whole transaction is that the disposal amounted to 73% of their entire holding.
Hilton Grand Vacations Insider Transactions Over The Last Year
Notably, that recent sale by Executive VP & Chief Human Resources Officer and Corporate Affairs Jorge Brizi was not the only time they sold Hilton Grand Vacations shares this year. They previously made an even bigger sale of -US$1.3m worth of shares at a price of US$47.59 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$41.85). So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Hilton Grand Vacations shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Hilton Grand Vacations insiders own 1.3% of the company, worth about US$55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Hilton Grand Vacations Tell Us?
An insider hasn't bought Hilton Grand Vacations stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Hilton Grand Vacations.
But note: Hilton Grand Vacations 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.
