Some Carnival Corporation Ltd. (NYSE:CCL) shareholders may be a little concerned to see that the Global Chief Human Resources Officer, Bettina Deynes, recently sold a substantial US$1.2m worth of stock at a price of US$28.10 per share. That diminished their holding by a very significant 65%, which arguably implies a strong desire to reallocate capital.

Carnival Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CFO & Chief Accounting Officer, David Bernstein, for US$12m worth of shares, at about US$33.22 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$27.17). So it is hard to draw any strong conclusion from it.

Insiders in Carnival didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Carnival Boast High Insider Ownership?

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. Insiders own 0.2% of Carnival shares, worth about US$91m. 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 Carnival Insider Transactions Indicate?

Insiders sold Carnival shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Carnival is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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. In terms of investment risks, we've identified 3 warning signs with Carnival and understanding them should be part of your investment process.

But note: Carnival 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 of direct interests only, but not derivative transactions or indirect interests.

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.