Royal Caribbean Cruises Insiders Sell US$3.1m Of Stock, Possibly Signalling Caution

Over the past year, many Royal Caribbean Cruises Ltd. (NYSE:RCL) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Royal Caribbean Cruises

The Last 12 Months Of Insider Transactions At Royal Caribbean Cruises

The Senior VP & Chief Accounting Officer, Henry Pujol, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$107 each. So what is clear is that an insider saw fit to sell at around the current price of US$99.20. 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.

All up, insiders sold more shares in Royal Caribbean Cruises than they bought, over the last year. 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!

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

Insiders At Royal Caribbean Cruises Have Sold Stock Recently

We've seen more insider selling than insider buying at Royal Caribbean Cruises recently. In total, insiders sold US$2.7m worth of shares in that time. On the other hand we note Independent Director Maritza Montiel bought US$104k worth of shares , as previously mentioned . Generally this level of net selling might be considered a bit bearish.

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. Royal Caribbean Cruises insiders own about US$106m worth of shares (which is 0.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Royal Caribbean Cruises Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Royal Caribbean Cruises stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Royal Caribbean Cruises and we suggest you have a look.

Of course Royal Caribbean Cruises may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.