Lead Independent Director Lynn Krominga Sold A Bunch Of Shares In Avis Budget Group
We wouldn't blame Avis Budget Group, Inc. (NASDAQ:CAR) shareholders if they were a little worried about the fact that Lynn Krominga, the Lead Independent Director recently netted about US$3.4m selling shares at an average price of US$120. That diminished their holding by a very significant 94%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Avis Budget Group
In fact, the recent sale by Lynn Krominga was the biggest sale of Avis Budget Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$124. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 94% of Lynn Krominga's holding.
Avis Budget Group insiders didn't buy any shares over the last year. 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!
View our latest analysis for Avis Budget Group
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Insider Ownership Of Avis Budget Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.5% of Avis Budget Group shares, worth about US$65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Avis Budget Group Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avis Budget Group. When we did our research, we found 2 warning signs for Avis Budget Group (1 is a bit concerning!) that we believe deserve your full attention.
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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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