Trade Alert: The Senior VP & Chief Accounting Officer Of Xenia Hotels & Resorts, Inc. (NYSE:XHR), Joseph Johnson, Has Sold Some Shares Recently

We wouldn't blame Xenia Hotels & Resorts, Inc. (NYSE:XHR) shareholders if they were a little worried about the fact that Joseph Johnson, the Senior VP & Chief Accounting Officer recently netted about US$707k selling shares at an average price of US$19.09. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for Xenia Hotels & Resorts

The Last 12 Months Of Insider Transactions At Xenia Hotels & Resorts

In fact, the recent sale by Joseph Johnson was the biggest sale of Xenia Hotels & Resorts shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$18.67. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$169k for 12.00k shares. But they sold 62.93k shares for US$1.2m. All up, insiders sold more shares in Xenia Hotels & Resorts than they bought, over the last year. 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!

I will like Xenia Hotels & Resorts better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Xenia Hotels & Resorts

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Xenia Hotels & Resorts insiders own about US$15m worth of shares. That equates to 0.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Xenia Hotels & Resorts Tell Us?

Insiders sold Xenia Hotels & Resorts shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for Xenia Hotels & Resorts (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

But note: Xenia Hotels & Resorts 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, 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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