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Have Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) Insiders Been Selling Their Stock?

Simply Wall St

Investors may wish to note that the President of Norwegian Cruise Line Holdings Ltd., Frank Del Rio, recently netted US$77k from selling stock, receiving an average price of US$50.05. However we note that the sale only shrunk their holding by 0.6%.

See our latest analysis for Norwegian Cruise Line Holdings

The Last 12 Months Of Insider Transactions At Norwegian Cruise Line Holdings

In the last twelve months, the biggest single sale by an insider was when the President & CEO of Norwegian Brand, Andrew Stuart, sold US$1.3m worth of shares at a price of US$50.02 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$50.21. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 7.8% of Andrew Stuart's holding.

Over the last year, we note insiders sold 53687 shares worth US$2.9m. Insiders in Norwegian Cruise Line Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:NCLH Recent Insider Trading, October 19th 2019

I will like Norwegian Cruise Line Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Norwegian Cruise Line Holdings insiders own about US$65m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Norwegian Cruise Line Holdings Insider Transactions Indicate?

Insiders haven't bought Norwegian Cruise Line Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Norwegian Cruise Line Holdings is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Norwegian Cruise Line Holdings, you should check out this free report on analyst forecasts for the company.

Of course Norwegian Cruise Line Holdings 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.