How Much Are Ryman Hospitality Properties, Inc. (NYSE:RHP) Insiders Taking Off The Table?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Ryman Hospitality Properties, Inc. (NYSE:RHP).
Do Insider Transactions Matter?
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 Ryman Hospitality Properties
Ryman Hospitality Properties Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Senior Vice President of Asset Management Patrick Chaffin sold US$990k worth of shares at a price of US$82.48 per share. So we know that an insider sold shares at around the present share price of US$71.36. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
Over the last year we saw more insider selling of Ryman Hospitality Properties shares, than buying. The sellers received a price of around US$48.36, on average. It’s not particularly great to see insiders were selling shares around current prices. While some insiders have decided to take some money off the table, we wouldn’t put too much weight on this fact. You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ryman Hospitality Properties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Ryman Hospitality Properties Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Ryman Hospitality Properties, over the last three months. We can see that Colin Reed paid US$988k for shares in the company. On the other hand, Director Alvin Bowles netted US$100k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership of Ryman Hospitality Properties
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. Ryman Hospitality Properties insiders own 2.0% of the company, currently worth about US$73m based on the recent share price. 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 Ryman Hospitality Properties Insider Transactions Indicate?
The recent insider purchase is heartening. But we can’t say the same for the transactions over the last 12 months. We don’t take much heart from transactions by Ryman Hospitality Properties insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Ryman Hospitality Properties may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
