Potential Park Hotels & Resorts Inc. (NYSE:PK) shareholders may wish to note that the Independent Director, Thomas Eckert, recently bought US$151k worth of stock, paying US$15.13 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.0%.
See our latest analysis for Park Hotels & Resorts
The Last 12 Months Of Insider Transactions At Park Hotels & Resorts
In fact, the recent purchase by Independent Director Thomas Eckert was not their only acquisition of Park Hotels & Resorts shares this year. Earlier in the year, they paid US$17.73 per share in a US$177k purchase. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$14.29). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Thomas Eckert was the only individual insider to buy shares in the last twelve months.
Thomas Eckert purchased 20.00k shares over the year. The average price per share was US$16.43. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:PK Insider Trading Volume June 18th 2022
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Park Hotels & Resorts
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Park Hotels & Resorts insiders own 1.2% of the company, worth about US$39m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Park Hotels & Resorts Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Park Hotels & Resorts insiders are well aligned, and that they may think the share price is too low. 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, Park Hotels & Resorts has 3 warning signs (and 1 which is significant) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.