Great news for Hilton Worldwide Holdings Inc. (NYSE:HLT): Insiders acquired stock in large numbers last year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Hilton Worldwide Holdings Inc.'s (NYSE:HLT) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Hilton Worldwide Holdings
Hilton Worldwide Holdings Insider Transactions Over The Last Year
The Senior VP & Chief Accounting Officer, Michael Duffy, made the biggest insider sale in the last 12 months. That single transaction was for US$286k worth of shares at a price of US$143 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$147. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 9.6% of Michael Duffy's holding. The only individual insider seller over the last year was Michael Duffy.
Happily, we note that in the last year insiders paid US$352k for 2.67k shares. On the other hand they divested 2.00k shares, for US$286k. In the last twelve months there was more buying than selling by Hilton Worldwide Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hilton Worldwide Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Hilton Worldwide Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 1.5% of the company, currently worth about US$587m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Hilton Worldwide Holdings Tell Us?
It doesn't really mean much that no insider has traded Hilton Worldwide Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Hilton Worldwide Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hilton Worldwide Holdings. Case in point: We've spotted 2 warning signs for Hilton Worldwide Holdings you should be aware of, and 1 of these is a bit unpleasant.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.
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