Don't Ignore The Fact That This Insider Just Sold Some Shares In Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Some Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) shareholders may be a little concerned to see that the President & CEO of Norwegian Brand, Andrew Stuart, recently sold a whopping US$1.3m worth of stock at a price of US$50.01 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 7.8%.

View our latest analysis for Norwegian Cruise Line Holdings

The Last 12 Months Of Insider Transactions At Norwegian Cruise Line Holdings

Notably, that recent sale by Andrew Stuart is the biggest insider sale of Norwegian Cruise Line Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$50.48. 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 7.8% of Andrew Stuart's holding.

Over the last year, we note insiders sold 52143 shares worth US$2.8m. Insiders in Norwegian Cruise Line Holdings didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Insider Ownership of Norwegian Cruise Line Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Norwegian Cruise Line Holdings insiders own 0.6% of the company, worth about US$65m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Norwegian Cruise Line Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Norwegian Cruise Line Holdings is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! Of course, the future is what matters most. So if you are interested in Norwegian Cruise Line Holdings, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.