Following a lethargic July, insider buying and selling activity have both increased in August, with insider selling activity being particularly robust. August 17 saw the most insider sales in a single day (295) since February 20.
However, we’re far more interested in insider buying activity, which can provide valuable insight into stocks that are perceived as undervalued by a company’s most influential and informed executives. Among the companies with notable insider buying activity during the past week, during which 289 purchases were made, were Wyndham Destinations Inc (NYSE:WYND), Aptiv PLC (NYSE:APTV), and Starbucks Corporation (NASDAQ:SBUX). We’ll take a look at those transactions and why insiders like those stocks below.
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Wyndham Destinations Inc (NYSE:WYND)
Who Bought Shares: CEO & President Michael Dean Brown
How Many Shares Were Bought: 6,000 @ $45.20 per share
Date of the Transaction(s): August 21
Wyndham Destinations Inc (NYSE:WYND)’s CEO and President Michael Dean Brown purchased 6,000 shares of the company that he leads on August 21, lifting his direct ownership position to 20,605 shares. Mr. Brown also directly owns 86,898 restricted stock units. The insider purchase by Mr. Brown, who joined the company in 2017 after most recently serving as COO at Hilton Grand Vacations, was the first insider purchase by a Wyndham Destinations executive in two-and-a-half years.
Formerly known as Wyndham Worldwide Corporation, the company completed the spinoff of its hotel division Wyndham Hotels & Resorts Inc (NYSE:WH) at the beginning of June, setting up Wyndham Destinations Inc (NYSE:WYND) as a pure-play in the vacation ownership and resort industry. With a P/E of just 4.02 and dividend payments that yield 3.65% annually, there’s a lot to like in Wyndham Destination’s shares, which are also trading below their peers in valuation after 15% declines in 2018. Wyndham Destination recently raised its 2018 Adjusted EPS guidance to $4.74-$4.94 from $4.55-$4.75, topping the consensus on the bottom-end of the new range.
On the next page, we’ll check out two other stocks with major insider buying activity last week.