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Those following along with Carnival Corporation & plc (NYSE:CCL) will no doubt be intrigued by the recent purchase of shares by Randall Weisenburger, Presiding Director & Senior Independent Director of the company, who spent a stonking US$4.5m on stock at an average price of US$12.99. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 39%.
View our latest analysis for Carnival Corporation &
The Last 12 Months Of Insider Transactions At Carnival Corporation &
In fact, the recent purchase by Randall Weisenburger was the biggest purchase of Carnival Corporation & shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.26). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Randall Weisenburger.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Carnival Corporation & insiders own 9.9% of the company, currently worth about US$1.5b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Carnival Corporation & Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Carnival Corporation & insiders are well aligned, and quite possibly think the share price is too low. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.