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Over the past year, many Royal Caribbean Cruises Ltd. (NYSE:RCL) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Royal Caribbean Cruises
Royal Caribbean Cruises Insider Transactions Over The Last Year
Notably, that recent sale by Jason Liberty is the biggest insider sale of Royal Caribbean Cruises shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$238. So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Royal Caribbean Cruises shares, than buying. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Royal Caribbean Cruises Insiders Are Selling The Stock
The last three months saw significant insider selling at Royal Caribbean Cruises. Specifically, insiders ditched US$41m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Royal Caribbean Cruises
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Royal Caribbean Cruises insiders own about US$226m worth of shares (which is 0.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Royal Caribbean Cruises Tell Us?
Insiders haven't bought Royal Caribbean Cruises stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Royal Caribbean Cruises is profitable and growing, we're not too worried by this. 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 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. Every company has risks, and we've spotted 2 warning signs for Royal Caribbean Cruises you should know about.