On September 11, 2023, Kristin Campbell, See Remarks at Hilton Worldwide Holdings Inc, sold 8,286 shares of the company's stock. This move comes amidst a year where the insider has sold a total of 41,149 shares and purchased none.
Kristin Campbell is a key figure at Hilton Worldwide Holdings Inc, a leading global hospitality company. The company owns, leases, manages, develops, and franchises hotels, resorts, and timeshare properties. It operates through two segments, Management and Franchise, and Ownership. The company was founded in 1919 and is headquartered in McLean, Virginia.
The sale by the insider is noteworthy, especially when considering the insider trends at Hilton Worldwide Holdings Inc. Over the past year, there has been only one insider buy compared to four insider sells. This could potentially signal a bearish sentiment within the company's insiders.
The relationship between insider transactions and stock price is often closely watched by investors. In this case, the shares of Hilton Worldwide Holdings Inc were trading for $154.03 apiece on the day of the insider's recent sell, giving the stock a market cap of $40.113 billion.
The price-earnings ratio of Hilton Worldwide Holdings Inc is 32.02, which is higher than both the industry median of 20 and the company’s historical median price-earnings ratio. This could suggest that the stock is overvalued, which might explain the insider's decision to sell.
However, the GuruFocus Value of Hilton Worldwide Holdings Inc is $171.08, which is higher than the current price of $154.03. This gives the stock a price-to-GF-Value ratio of 0.9, indicating that the stock is modestly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sale by the insider, Kristin Campbell, could be seen as a bearish signal, especially considering the higher number of insider sells compared to buys over the past year. However, the stock appears to be modestly undervalued according to the GF Value, which could present a potential opportunity for investors.
