Over the past year, many Vail Resorts, Inc. (NYSE:MTN) insiders sold a significant stake in the company which may have piqued investors' interest.   Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations.  However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.    

While insider transactions are not the most important thing when it comes to long-term investing,  logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Vail Resorts

The Independent Director, Hilary Schneider, made the biggest insider sale in the last 12 months. That single transaction was for US$581k worth of shares at a price of US$226 each.   While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price.  It's of some comfort that this sale was conducted at a price well above the current share price, which is US$201.  So it may not shed much light on insider confidence at current levels.  

Insiders in Vail Resorts didn't buy any shares in the last year.    You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below.  By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:MTN Insider Trading Volume April 25th 2024

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Vail Resorts Insiders Are Selling The Stock  

Over the last three months, we've seen significant insider selling at Vail Resorts.  In total,   Independent Director  Peter Vaughn  sold US$223k worth of shares in that time, and we didn't record any purchases whatsoever.  In light of this it's hard to argue that all the insiders think that the shares are a bargain.  

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.   It appears that Vail Resorts insiders own 1.2% of the company, worth about US$90m.  While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.  

So What Do The Vail Resorts Insider Transactions Indicate?

An insider hasn't  bought Vail Resorts 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.    Insiders own shares, but we're still pretty cautious, given the history of sales.  We're in no rush to buy!      In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vail Resorts.    When we did our research, we found 2 warning signs for Vail Resorts (1 is concerning!) that we believe deserve your full attention.  

Of course Vail Resorts 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.