We wouldn't blame Travel + Leisure Co. (NYSE:TNL) shareholders if they were a little worried about the fact that James Savina, the General Counsel & Corporate Secretary recently netted about US$1.5m selling shares at an average price of US$55.91. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At Travel + Leisure

The Non-Executive Chairman of the Board, Stephen Holmes, made the biggest insider sale in the last 12 months. That single transaction was for US$3.8m worth of shares at a price of US$47.55 each. That means that even when the share price was below the current price of US$56.28, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Stephen Holmes's holding.

In the last year Travel + Leisure insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Travel + Leisure Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Travel + Leisure insiders own about US$76m worth of shares. That equates to 2.1% of the company. 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 Travel + Leisure Tell Us?

An insider hasn't bought Travel + Leisure 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 Travel + Leisure is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Travel + Leisure you should be aware of, and 1 of these can't be ignored.

Of course Travel + Leisure 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.