Travelzoo Insiders Placed Bullish Bets Worth US$15m \
Quite a few insiders have dramatically grown their holdings in Travelzoo (NASDAQ:TZOO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Travelzoo
Travelzoo Insider Transactions Over The Last Year
In fact, the recent sale by Founder & Chief Talent Officer Ralph Bartel was not their only trade of Travelzoo shares this year. Earlier in the year, they spent US$15m to buy shares at US$4.40 per share. Even though the purchase was made at a significantly lower price than the recent price (US$9.48), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 3.44m shares worth US$15m. But insiders sold 489.47k shares worth US$3.8m. In the last twelve months there was more buying than selling by Travelzoo insiders. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Travelzoo Have Sold Stock Recently
The last three months saw significant insider selling at Travelzoo. In total, Founder & Chief Talent Officer Ralph Bartel dumped US$3.8m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Travelzoo Boast High 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. Travelzoo insiders own 53% of the company, currently worth about US$77m 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.
What Might The Insider Transactions At Travelzoo Tell Us?
An insider sold Travelzoo shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Travelzoo. For example - Travelzoo has 3 warning signs we think you should be aware of.
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.
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, but not derivative transactions.
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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.
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