We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Marriott Vacations Worldwide Corporation (NYSE:VAC).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Marriott Vacations Worldwide Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP and Chief Marketing, Brian Miller, sold US$689k worth of shares at a price of US$98.45 per share. So what is clear is that an insider saw fit to sell at around the current price of US$97.36. 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.
Over the last year, we can see that insiders have bought 18960.94 shares worth US$1.5m. But insiders sold 12757 shares worth US$1.2m. In the last twelve months there was more buying than selling by Marriott Vacations Worldwide insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Marriott Vacations Worldwide Insiders Are Selling The Stock
We’ve seen more insider selling than insider buying at Marriott Vacations Worldwide recently. In total, insiders sold US$965k worth of shares in that time. Meanwhile President Stephen Weisz bought US$335k worth. Generally this level of net selling might be considered a bit bearish.
Insider Ownership of Marriott Vacations Worldwide
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Marriott Vacations Worldwide insiders own 7.7% of the company, currently worth about US$327m based on the recent share price. 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 Does This Data Suggest About Marriott Vacations Worldwide Insiders?
The stark truth for Marriott Vacations Worldwide is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn’t worry us. Of course, the future is what matters most. So if you are interested in Marriott Vacations Worldwide, 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 email@example.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.