This Insider Has Just Sold Shares In Travelzoo

Anyone interested in Travelzoo (NASDAQ:TZOO) should probably be aware that the Founder & Chief Talent Officer, Ralph Bartel, recently divested US$338k worth of shares in the company, at an average price of US$8.44 each. However, the silver lining is that the sale only reduced their total holding by 0.8%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Travelzoo

Travelzoo Insider Transactions Over The Last Year

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$1.4m worth of shares at a price of US$9.13 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$7.89. So it is hard to draw any strong conclusion from it.

Ralph Bartel ditched 2.48m shares over the year. The average price per share was US$8.13. 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!

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Insider Ownership Of Travelzoo

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Travelzoo insiders own 44% of the company, currently worth about US$45m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Travelzoo Insider Transactions Indicate?

An insider hasn't bought Travelzoo stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Travelzoo is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Travelzoo. While conducting our analysis, we found that Travelzoo has 1 warning sign and it would be unwise to ignore this.

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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.