Don't Ignore The Insider Selling In Marriott International
We wouldn't blame Marriott International, Inc. (NASDAQ:MAR) shareholders if they were a little worried about the fact that John Marriott, the Chairman Emeritus recently netted about US$1.2m selling shares at an average price of US$352. However, that sale only accounted for 0.05% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Marriott International
The President, Anthony Capuano, made the biggest insider sale in the last 12 months. That single transaction was for US$23m worth of shares at a price of US$360 each. So what is clear is that an insider saw fit to sell at around the current price of US$356. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Marriott International insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Marriott International
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Insider Ownership Of Marriott International
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Marriott International insiders own about US$7.7b worth of shares (which is 8.3% 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 Do The Marriott International Insider Transactions Indicate?
An insider sold Marriott International shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Marriott International is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Marriott International. At Simply Wall St, we found 2 warning signs for Marriott International that deserve your attention before buying any shares.
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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.
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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.