Have United Parks & Resorts Insiders Been Selling Stock?

We'd be surprised if United Parks & Resorts Inc. (NYSE:PRKS) shareholders haven't noticed that the Chief Commercial Officer, Christopher Finazzo, recently sold US$414k worth of stock at US$43.18 per share. The eyebrow raising move amounted to a reduction of 17% in their holding.

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The Last 12 Months Of Insider Transactions At United Parks & Resorts

In the last twelve months, the biggest single purchase by an insider was when CFO & Treasurer James Mikolaichik bought US$1.9m worth of shares at a price of US$57.29 per share. That means that an insider was happy to buy shares at above the current price of US$41.06. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. James Mikolaichik was the only individual insider to buy during the last year.

Over the last year we saw more insider selling of United Parks & Resorts shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for United Parks & Resorts

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Does United Parks & Resorts Boast High Insider Ownership?

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. United Parks & Resorts insiders own about US$26m worth of shares. That equates to 1.1% of the company. 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 United Parks & Resorts Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, United Parks & Resorts makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Parks & Resorts. Our analysis shows 2 warning signs for United Parks & Resorts (1 can't be ignored!) and we strongly recommend you look at these before investing.

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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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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.