Some Travel + Leisure Co. (NYSE:TNL) shareholders may be a little concerned to see that the Chief Technology Officer, Sy Esfahani, recently sold a substantial US$4.1m worth of stock at a price of US$78.00 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At Travel + Leisure

Over the last year, we can see that the biggest insider sale was by the Chief Sales & Marketing Officer of Vacation Ownership, Jeffrey Myers, for US$5.2m worth of shares, at about US$69.43 per share. That means that even when the share price was below the current price of US$76.70, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 55% of Jeffrey Myers's holding.

Over the last year we saw more insider selling of Travel + Leisure shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Travel + Leisure better if I see some big insider buys.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Travel + Leisure insiders own 2.1% of the company, worth about US$100m. 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 Travel + Leisure Tell Us?

Insiders haven't bought Travel + Leisure stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. For example, Travel + Leisure has 5 warning signs (and 1 which is a bit concerning) we think you should know about.

But note: Travel + Leisure 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.