Insiders At Marriott International Sold US$59m In Stock, Alluding To Potential Weakness

Simply Wall St · 07/01 10:08

In the last year, many Marriott International, Inc. (NASDAQ:MAR) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Marriott International

The Last 12 Months Of Insider Transactions At Marriott International

Over the last year, we can see that the biggest insider sale was by the CFO & Executive VP of Development, Kathleen Oberg, for US$11m worth of shares, at about US$243 per share. That means that an insider was selling shares at around the current price of US$242. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Marriott International insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:MAR Insider Trading Volume July 1st 2024

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Marriott International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Marriott International insiders own about US$5.7b worth of shares (which is 8.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Marriott International Insiders?

It doesn't really mean much that no insider has traded Marriott International shares in the last quarter. While we feel good about high insider ownership of Marriott International, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Marriott International and understanding this should be part of your investment process.

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 of direct interests only, but not derivative transactions or indirect interests.