A good number of Hilton Worldwide Holdings Inc. (NYSE:HLT) insiders sold shares in the past year, not a positive omen for investors

Hilton Worldwide Holdings Inc. (NYSE:HLT) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Hilton Worldwide Holdings

The Last 12 Months Of Insider Transactions At Hilton Worldwide Holdings

In the last twelve months, the biggest single sale by an insider was when the Senior VP & Chief Accounting Officer, Michael Duffy, sold US$286k worth of shares at a price of US$143 per share. That means that an insider was selling shares at around the current price of US$142. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of Hilton Worldwide Holdings shares, than buying. 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!

I will like Hilton Worldwide Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Hilton Worldwide Holdings Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Hilton Worldwide Holdings. Executive VP & Chief Commercial Officer Christopher Silcock only netted US$12k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Hilton Worldwide Holdings

For a common shareholder, it is worth checking how many shares are held by company 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. Hilton Worldwide Holdings insiders own about US$595m worth of shares (which is 1.6% of the company). 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 Do The Hilton Worldwide Holdings Insider Transactions Indicate?

While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Hilton Worldwide Holdings insider transactions don't fill us with confidence. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Hilton Worldwide Holdings is showing 2 warning signs in our investment analysis, and 1 of those is concerning...

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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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.