Stock Analysis

Have Hilton Worldwide Holdings Inc. (NYSE:HLT) Insiders Been Selling Their Stock?

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NYSE:HLT
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Some Hilton Worldwide Holdings Inc. (NYSE:HLT) shareholders may be a little concerned to see that the Senior VP & Chief Accounting Officer, Michael Duffy, recently sold a substantial US$725k worth of stock at a price of US$121 per share. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.

Check out 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 Executive VP & Chief Commercial Officer, Christopher Silcock, sold US$3.8m worth of shares at a price of US$90.47 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$124. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was 62% of Christopher Silcock's stake.

Insiders in Hilton Worldwide Holdings didn't buy any shares in 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!

insider-trading-volume
NYSE:HLT Insider Trading Volume March 10th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Hilton Worldwide Holdings insiders own 1.6% of the company, currently worth about US$548m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Hilton Worldwide Holdings Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Hilton Worldwide Holdings (of which 1 makes us a bit uncomfortable!) you should know about.

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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