This Insider Has Just Sold Shares In OneSpaWorld Holdings

Some OneSpaWorld Holdings Limited (NASDAQ:OSW) shareholders may be a little concerned to see that the CEO & Executive Chairman, Leonard Fluxman, recently sold a substantial US$1.5m worth of stock at a price of US$19.37 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.9%.

We've discovered 1 warning sign about OneSpaWorld Holdings. View them for free.

OneSpaWorld Holdings Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Executive Chairman Leonard Fluxman was not the only time they sold OneSpaWorld Holdings shares this year. They previously made an even bigger sale of -US$4.7m worth of shares at a price of US$19.29 per share. That means that an insider was selling shares at below the current price (US$19.31). 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 15% of Leonard Fluxman's stake.

OneSpaWorld Holdings insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) 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!

View our latest analysis for OneSpaWorld Holdings

I will like OneSpaWorld Holdings 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.

Does OneSpaWorld Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.7% of OneSpaWorld Holdings shares, worth about US$53m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The OneSpaWorld 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. On the plus side, OneSpaWorld Holdings makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of OneSpaWorld Holdings.

But note: OneSpaWorld Holdings 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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