Who Has Been Buying TripAdvisor, Inc. (NASDAQ:TRIP) Shares?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in TripAdvisor, Inc. (NASDAQ:TRIP).

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, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for TripAdvisor

The Last 12 Months Of Insider Transactions At TripAdvisor

Over the last year, we can see that the biggest insider purchase was by Co-founder Stephen Kaufer for US$966k worth of shares, at about US$21.73 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$28.31. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TripAdvisor is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at TripAdvisor Have Sold Stock Recently

The last three months saw some TripAdvisor insider selling. Chief Commercial Officer Kanika Soni only netted US$10k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Insider Ownership of TripAdvisor

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that TripAdvisor insiders own 0.6% of the company, worth about US$23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At TripAdvisor Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in TripAdvisor and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for TripAdvisor that deserve your attention before buying any shares.

Of course TripAdvisor 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.

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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. 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.
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