A few Ryman Hospitality Properties, Inc. (NYSE:RHP) insiders sold shares in the last 12 months: Not a good sign for shareholders

By
Simply Wall St
Published
January 11, 2022
NYSE:RHP
Source: Shutterstock

Ryman Hospitality Properties, Inc. (NYSE:RHP) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Ryman Hospitality Properties

Ryman Hospitality Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Fazal Merchant, sold US$112k worth of shares at a price of US$83.41 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$90.77. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 30% of Fazal Merchant's holding.

Ryman Hospitality Properties insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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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NYSE:RHP Insider Trading Volume January 11th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Ryman Hospitality Properties Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.0% of Ryman Hospitality Properties shares, worth about US$98m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Ryman Hospitality Properties Insiders?

It doesn't really mean much that no insider has traded Ryman Hospitality Properties shares in the last quarter. Our analysis of Ryman Hospitality Properties insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ryman Hospitality Properties. You'd be interested to know, that we found 2 warning signs for Ryman Hospitality Properties and we suggest you have a look.

Of course Ryman Hospitality Properties 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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