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Investors who take an interest in Park Hotels & Resorts Inc. (NYSE:PK) should definitely note that the Independent Director, Thomas Eckert, recently paid US$15.13 per share to buy US$151k worth of the stock. Although the purchase only increased their holding by 9.0%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Park Hotels & Resorts
In fact, the recent purchase by Independent Director Thomas Eckert was not their only acquisition of Park Hotels & Resorts shares this year. They previously made an even bigger purchase of US$177k worth of shares at a price of US$17.73 per share. That means that an insider was happy to buy shares at above the current price of US$14.29. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Thomas Eckert.
Thomas Eckert bought a total of 20.00k shares over the year at an average price of US$16.43. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Park Hotels & Resorts is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Park Hotels & Resorts Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Park Hotels & Resorts insiders own 1.2% of the company, worth about US$40m. 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 Park Hotels & Resorts Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Park Hotels & Resorts we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Park Hotels & Resorts. When we did our research, we found 2 warning signs for Park Hotels & Resorts (1 can't be ignored!) that we believe deserve your full attention.
Of course Park Hotels & Resorts may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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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.