We'd be surprised if Playa Hotels & Resorts N.V. (NASDAQ:PLYA) shareholders haven't noticed that the Independent Non-Executive Director, Karl Peterson, recently sold US$242k worth of stock at US$8.06 per share. On the bright side, that sale was only 1.1% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Playa Hotels & Resorts

Playa Hotels & Resorts Insider Transactions Over The Last Year

In fact, the recent sale by Independent Non-Executive Director Karl Peterson was not their only sale of Playa Hotels & Resorts shares this year. Earlier in the year, they fetched US$9.55 per share in a -US$1.3m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.30. So it is hard to draw any strong conclusion from it.

Playa Hotels & Resorts insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 7.3% of Playa Hotels & Resorts shares, worth about US$84m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Playa Hotels & Resorts Tell Us?

An insider sold Playa Hotels & Resorts shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Playa Hotels & Resorts you should be aware of, and 1 of them is a bit concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.