Don't Ignore The Fact That This Insider Just Sold Some Shares In Booking Holdings Inc. (NASDAQ:BKNG)

By
Simply Wall St
Published
May 26, 2022
NasdaqGS:BKNG
Source: Shutterstock

We'd be surprised if Booking Holdings Inc. (NASDAQ:BKNG) shareholders haven't noticed that the Executive VP & Chief HR, Paulo Pisano, recently sold US$252k worth of stock at US$2,100 per share. The eyebrow raising move amounted to a reduction of 12% in their holding.

See our latest analysis for Booking Holdings

The Last 12 Months Of Insider Transactions At Booking Holdings

In fact, the recent sale by Paulo Pisano was the biggest sale of Booking Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$2,147). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 12% of Paulo Pisano's stake.

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!

insider-trading-volume
NasdaqGS:BKNG Insider Trading Volume May 26th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Booking Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Booking Holdings insiders own about US$151m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Booking Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 4 warning signs for Booking Holdings and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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