Surging Insider Buying Witnessed at These 4 Companies

Wyndham Worldwide Corporation (NYSE:WYN) saw three different insiders buy shares earlier this week. To begin with, Chairman, President and Chief Executive Officer Stephen P. Holmes acquired 25,000 shares on Wednesday at a weighted average price of $64.44, lifting his stake to 890,178 shares. Furthermore, Franz S. Hanning, Chief Executive Officer and President of Wyndham Vacation Ownership, reported purchasing 10,000 units of common stock on the same day at an average price of $64.91, which are held by a grantor retained annuity trust (GRAT). After the recent purchase, the GRAT holds a stake of 30,000 shares. The executive also holds a direct ownership stake of 26,241 shares, which does not include restricted stock units. Last but not least, Director James E. Buckman purchased 1,600 shares on Tuesday at $63.77 apiece and currently owns 5,998 shares (excluding deferred stock units and restricted stock units).

The shares of the provider of hospitality services and products are down by 27% over the past 12 months, but there are several nuances that point to a potential rebound in the upcoming months. The company recently reported revenue of $5.5 billion for 2015, which marked an increase of 5% year-over-year. At the same time, its reported net income reached $612 million or $5.14 per diluted share, compared to $529 million or $4.18 per diluted share reported for 2014. Most importantly, Wyndham’s management anticipates generating revenue in the range of $5.8 billion to $5.98 billion for 2016, which is above analysts’ expectations of $5.72 billion. Moreover, the majority of analysts and financial hubs covering the stock have ‘Buy’ ratings for the company, which is yet another reason for considering Wyndham as a potential investment. It should also be noted that the stock trades at a forward P/E multiple of 11.52, which is below the ratio of 15.87 for the S&P 500 Index. Last but not least, the company’s Board recently authorized an increase to its quarterly cash dividend, to $0.50 per share from $0.42. Iridian Asset Management, founded by David Cohen and Harold Levy, upped its position in Wyndham Worldwide Corporation (NYSE:WYN) by 1.31 million shares during the fourth quarter, to 6.88 million shares.

Follow Travel & Leisure Co. (NYSE:TNL)