Travel + Leisure Chief Ethics & Compliance Officer James Savina Sells 49% Of Holding

Some Travel + Leisure Co. (NYSE:TNL) shareholders may be a little concerned to see that the Chief Ethics & Compliance Officer, James Savina, recently sold a substantial US$678k worth of stock at a price of US$45.18 per share. That sale reduced their total holding by 49% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Travel + Leisure

The Last 12 Months Of Insider Transactions At Travel + Leisure

The insider, Olivier Chavy, made the biggest insider sale in the last 12 months. That single transaction was for US$829k worth of shares at a price of US$38.39 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$45.24. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Olivier Chavy's stake.

All up, insiders sold more shares in Travel + Leisure than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Travel + Leisure insiders own about US$50m worth of shares. That equates to 1.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Travel + Leisure Insiders?

Insiders sold Travel + Leisure shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Travel + Leisure is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 3 warning signs for Travel + Leisure (of which 1 shouldn't be ignored!) you should know about.

Of course Travel + Leisure 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 of direct interests only, but not derivative transactions or indirect interests.

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