While Playa Hotels & Resorts NV (NASDAQ: PLYA) Shareholders enjoyed a good week with stocks up 10%, they need to stay vigilant. Although prices have been relatively low, insiders have decided to sell $ 1.7 million worth of shares in the past 12 months. This could be a sign of impending weakness.
While insider trading isn’t the most important thing when it comes to long-term investing, we’d think it would be foolish to ignore insider trading altogether.
Check out our latest analysis for Playa Hotels & Resorts
Playa Hotels & Resorts insider deals last year
Independent non-executive director, Karl Peterson, made the biggest insider sale in the past 12 months. That single transaction was for $ 1.6 million of shares priced at $ 4.54 each. So it’s clear that an insider wanted to take some cash off the table, even below the current price of $ 7.61. If an insider sells below the current price, it indicates that they think that lower price is fair. That makes us wonder what you think of the (higher) recent rating. Insider selling is sometimes daunting, but it’s a weak signal. It is noteworthy that this sale accounted for only 8.9% of Karl Peterson’s stake.
In the past year, insiders at Playa Hotels & Resorts did not buy any company shares. You can see insider transactions (by companies and individuals) over the past year in the graph below. If you click on the chart, you will see all individual transactions including share price, individual and date!
NasdaqGS: PLYA Insider Trading Volume September 14, 2021
If you are like me then you will not want to miss that for free List of growing companies that insider buy.
Playa Hotels & Resorts insider property
Many investors like to check how much a company has heard from insiders. I think it’s a good sign when insiders own a significant number of shares in the company. Insiders own 6.7% of the shares in Playa Hotels & Resorts, valued at approximately $ 75 million. This level of inside ownership is good, but not particularly great. It certainly suggests a reasonable level of alignment.
What does this data say about insiders at Playa Hotels & Resorts?
It doesn’t really mean much that no insider traded shares in Playa Hotels & Resorts in the last quarter. Our analysis of Playa Hotels & Resorts’ insider trading leads us to be cautious. But it’s good to see that insiders own shares in the company. In addition to knowing about insider trading, it is beneficial to identify the risks that Playa Hotels & Resorts is exposed to. During our analysis we found that Playa Hotels & Resorts 1 warning sign and it would be unwise to ignore it.
If you prefer to look at another company – one with potentially superior financials – then don’t miss out on this for free List of interesting companies that have HIGH return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently account for open market transactions and private dispositions, but no derivative transactions.
To trade Playa Hotels & Resorts, open an account with the lowest cost * platform trusted by the pros. Interactive brokers. Your clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide through a single integrated account. Funded
This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
* Interactive Brokers rated as the lowest cost broker by StockBrokers.com Annual Online Review 2020
Do you have any feedback on this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.
