Despite the fact that Braemar Hotels & Resorts, Inc. (NYSE:BHR) stock rose 10% last week, insiders who sold US$2.0m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$6.67, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Braemar Hotels & Resorts
Braemar Hotels & Resorts Insider Transactions Over The Last Year
The President, Richard Stockton, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$6.92 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$5.83. So it may not tell us anything about how insiders feel about the current share price.
In total, Braemar Hotels & Resorts insiders sold more than they bought over 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!
NYSE:BHR Insider Trading Volume February 11th 2022
I will like Braemar Hotels & Resorts better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Braemar Hotels & Resorts insiders own about US$12m worth of shares. That equates to 3.1% of the company. 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 Does This Data Suggest About Braemar Hotels & Resorts Insiders?
The fact that there have been no Braemar Hotels & Resorts insider transactions recently certainly doesn’t bother us. Our analysis of Braemar Hotels & Resorts insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of 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. For example, Braemar Hotels & Resorts has 3 warning signs (and 1 which is concerning) we think you should know about.
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, but not derivative transactions.
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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.