Yahoo Finance How Many Hilton Worldwide Holdings Inc. (NYSE:HLT) Shares Have Insiders Sold, In The Last Year?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Hilton Worldwide Holdings Inc. (NYSE:HLT).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for Hilton Worldwide Holdings
The Last 12 Months Of Insider Transactions At Hilton Worldwide Holdings
The Executive VP & CFO, Kevin Jacobs, made the biggest insider sale in the last 12 months. That single transaction was for US$4.3m worth of shares at a price of US$81.45 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$97.69. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 24% of Kevin Jacobs's holding.
In the last twelve months insiders netted US$8.0m for 95175 shares sold. In the last year Hilton Worldwide Holdings insiders didn't buy any company stock. You can see the insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Hilton Worldwide Holdings
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Hilton Worldwide Holdings insiders own 1.5% of the company, worth about US$417m. 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. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Hilton Worldwide Holdings insiders selling. Of course, the future is what matters most. So if you are interested in Hilton Worldwide Holdings, you should check out this free report on analyst forecasts for the company.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
