Independent Chairman of the Board Russell Galbut Just Bought 22% More Shares In Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

·3 min read

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) shareholders (or potential shareholders) will be happy to see that the Independent Chairman of the Board, Russell Galbut, recently bought a whopping US$1.5m worth of stock, at a price of US$15.13. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 22%.

View our latest analysis for Norwegian Cruise Line Holdings

Norwegian Cruise Line Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Russell Galbut was the biggest purchase of Norwegian Cruise Line Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$16.20. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Norwegian Cruise Line Holdings share holders is that an insider was buying at near the current price. Russell Galbut was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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insider-trading-volume

Norwegian Cruise Line Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Norwegian Cruise Line Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. 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$35m worth of shares. That equates to 0.5% 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 Does This Data Suggest About Norwegian Cruise Line Holdings Insiders?

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 Norwegian Cruise Line Holdings we think they are probably pretty confident of a bright future. 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. For example, Norwegian Cruise Line Holdings has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

But note: Norwegian Cruise Line Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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