Have Insiders Been Selling Host Hotels & Resorts, Inc. (NYSE:HST) Shares?
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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 shareholders might well want to know whether insiders have been buying or selling shares in Host Hotels & Resorts, Inc. (NYSE:HST).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 equally, we would consider it foolish to ignore insider transactions altogether. 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.'
See our latest analysis for Host Hotels & Resorts
The Last 12 Months Of Insider Transactions At Host Hotels & Resorts
The Executive VP & CFO, Michael Bluhm, made the biggest insider sale in the last 12 months. That single transaction was for US$364k worth of shares at a price of US$19.84 each. That means that an insider was selling shares at around the current price of US$18.21. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
We note that in the last year insiders divested 20045 shares for a total of US$397k. Insiders in Host Hotels & Resorts didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by 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!
I will like Host Hotels & Resorts better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Host Hotels & Resorts Have Sold Stock Recently
We have seen a bit of insider selling at Host Hotels & Resorts, over the last three months. Executive VP & Chief Investment Officer Nathan Tyrrell divested only US$33k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Host Hotels & Resorts insiders own about US$136m worth of shares (which is 1.0% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Host Hotels & Resorts Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Host Hotels & Resorts insiders selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Host Hotels & Resorts.
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.
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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.
