Some Royal Caribbean Cruises Ltd. (NYSE:RCL) shareholders may be a little concerned to see that the President & CEO of Royal Caribbean International, Michael Bayley, recently sold a substantial US$4.0m worth of stock at a price of US$316 per share. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Royal Caribbean Cruises

The CEO & Chairman, Jason Liberty, made the biggest insider sale in the last 12 months. That single transaction was for US$30m worth of shares at a price of US$332 each. So we know that an insider sold shares at around the present share price of US$318. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Royal Caribbean Cruises didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Royal Caribbean Cruises Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Royal Caribbean Cruises insiders own 0.4% of the company, currently worth about US$332m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Royal Caribbean Cruises Tell Us?

An insider hasn't bought Royal Caribbean Cruises stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Royal Caribbean Cruises is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.