We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Hilton Grand Vacations Inc. (NYSE:HGV).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Hilton Grand Vacations
Chairman Leonard Potter made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$40.38 each. That means that even when the share price was higher, an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid US$2.7m for 78.00k shares purchased. Overall, Hilton Grand Vacations insiders were net buyers last year. The average buy price was around US$34.80. These transactions suggest that insiders have considered the current price of US$31.47 attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Hilton Grand Vacations
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of Hilton Grand Vacations shares, worth about US$18m. 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 Does This Data Suggest About Hilton Grand Vacations Insiders?
It doesn’t really mean much that no insider has traded Hilton Grand Vacations shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Hilton Grand Vacations and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Hilton Grand Vacations, you should check out this free report on analyst forecasts for the company.
Of course Hilton Grand Vacations may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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.