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From what we can see, insiders were net buyers in Royal Caribbean Cruises Ltd.'s (NYSE:RCL ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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
Over the last year, we can see that the biggest insider purchase was by Independent Director Vagn Sorensen for US$150k worth of shares, at about US$53.73 per share. We do like to see buying, but this purchase was made at well below the current price of US$75.37. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Royal Caribbean Cruises is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Royal Caribbean Cruises Boast High Insider Ownership?
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 Royal Caribbean Cruises insiders own 0.5% of the company, worth about US$98m. 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 Royal Caribbean Cruises Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Royal Caribbean Cruises and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Royal Caribbean Cruises. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Royal Caribbean Cruises.
But note: Royal Caribbean Cruises 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.