Have Insiders Sold Travelzoo Shares Recently?

Some Travelzoo (NASDAQ:TZOO) shareholders may be a little concerned to see that the Founder & Chief Talent Officer, Ralph Bartel, recently sold a substantial US$555k worth of stock at a price of US$8.47 per share. However, that sale only accounted for 1.2% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Travelzoo

The Last 12 Months Of Insider Transactions At Travelzoo

Notably, that recent sale by Founder & Chief Talent Officer Ralph Bartel was not the only time they sold Travelzoo shares this year. They previously made an even bigger sale of -US$1.5m worth of shares at a price of US$8.06 per share. That means that an insider was selling shares at slightly below the current price (US$9.64). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.6% of Ralph Bartel's holding.

Ralph Bartel ditched 2.63m shares over the year. The average price per share was US$7.86. 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!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Travelzoo insiders own about US$58m worth of shares (which is 43% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Travelzoo Tell Us?

An insider hasn't bought Travelzoo stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Travelzoo makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Travelzoo, you should check out this free report on analyst forecasts for the company.

But note: Travelzoo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.