We wouldn't blame Hilton Worldwide Holdings Inc. (NYSE:HLT) shareholders if they were a little worried about the fact that Michael Duffy, the Senior VP & Chief Accounting Officer recently netted about US$1.0m selling shares at an average price of US$166. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.
Check out our latest analysis for Hilton Worldwide Holdings
The Last 12 Months Of Insider Transactions At Hilton Worldwide Holdings
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief HR Officer, Laura Fuentes, sold US$1.8m worth of shares at a price of US$141 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$168. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Laura Fuentes's holding.
Over the last year we saw more insider selling of Hilton Worldwide Holdings shares, than buying. 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!
I will like Hilton Worldwide Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Hilton Worldwide Holdings insiders own 1.6% of the company, currently worth about US$695m 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.
What Might The Insider Transactions At Hilton Worldwide Holdings Tell Us?
Insiders haven't bought Hilton Worldwide Holdings 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. On the plus side, Hilton Worldwide Holdings makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 3 warning signs with Hilton Worldwide Holdings and understanding them should be part of your investment process.
But note: Hilton Worldwide Holdings 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.