Independent Director Of Travel + Leisure Sold 55% Of Their Shares

We'd be surprised if Travel + Leisure Co. (NYSE:TNL) shareholders haven't noticed that the Independent Director, Denny Post, recently sold US$276k worth of stock at US$50.20 per share. Equally important, that sale actually reduced their holding by a full 55% which hardly makes us feel bullish about the stock.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

The Last 12 Months Of Insider Transactions At Travel + Leisure

The Non-Executive Chairman of the Board, Stephen Holmes, made the biggest insider sale in the last 12 months. That single transaction was for US$3.8m worth of shares at a price of US$47.55 each. That means that an insider was selling shares at slightly below the current price (US$49.66). 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. This single sale was just 18% of Stephen Holmes's stake.

In total, Travel + Leisure insiders sold more 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!

Check out our latest analysis for Travel + Leisure

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. It appears that Travel + Leisure insiders own 2.5% of the company, worth about US$83m. 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 Do The Travel + Leisure Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Travel + Leisure stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Travel + Leisure makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. When we did our research, we found 3 warning signs for Travel + Leisure (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.