Insiders At Expedia Group Sold US$4.7m In Stock, Alluding To Potential Weakness

Many Expedia Group, Inc. (NASDAQ:EXPE) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Expedia Group

The Last 12 Months Of Insider Transactions At Expedia Group

In fact, the recent sale by Chief Legal Officer & Secretary Robert Dzielak was not their only sale of Expedia Group shares this year. They previously made an even bigger sale of -US$1.7m worth of shares at a price of US$132 per share. That means that an insider was selling shares at slightly below the current price (US$141). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. It is worth noting that this sale was only 12% of Robert Dzielak's holding.

Expedia Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and 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!

I will like Expedia Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Expedia Group Insiders Are Selling The Stock

The last three months saw significant insider selling at Expedia Group. Specifically, insiders ditched US$2.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Expedia Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Expedia Group insiders own 5.1% of the company, worth about US$907m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Expedia Group Insiders?

Insiders haven't bought Expedia Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Expedia Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Expedia Group. For example - Expedia Group has 2 warning signs we think you should be aware of.

But note: Expedia Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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