Stock Analysis

Read This Before Selling Realogy Holdings Corp. (NYSE:RLGY) Shares

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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Realogy Holdings Corp. (NYSE:RLGY).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. 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 Realogy Holdings

Realogy Holdings Insider Transactions Over The Last Year

The President & CEO of Cartus Corporation Katrina Helmkamp made the biggest insider purchase in the last 12 months. That single transaction was for US$169k worth of shares at a price of US$8.44 each. We do like to see buying, but this purchase was made at well below the current price of US$12.00. 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.

Realogy Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
NYSE:RLGY Insider Trading Volume November 25th 2020

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.6% of Realogy Holdings shares, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Realogy Holdings Insiders?

The fact that there have been no Realogy Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Realogy Holdings insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Realogy Holdings and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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What are the risks and opportunities for Anywhere Real Estate?

Anywhere Real Estate Inc., through its subsidiaries, provides residential real estate services in the United States and internationally.

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Rewards

  • Trading at 84.8% below our estimate of its fair value

Risks

  • Earnings are forecast to decline by an average of 2.2% per year for the next 3 years

  • Debt is not well covered by operating cash flow

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