When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Marriott Vacations Worldwide Corporation's (NYSE:VAC) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Marriott Vacations Worldwide

The Last 12 Months Of Insider Transactions At Marriott Vacations Worldwide

Notably, that recent purchase by John Geller is the biggest insider purchase of Marriott Vacations Worldwide shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$66.40. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$571k for 7.97k shares. But they sold 1.55k shares for US$146k. In total, Marriott Vacations Worldwide insiders bought more than they sold 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!

Marriott Vacations Worldwide is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Marriott Vacations Worldwide Insiders Bought Stock Recently

Over the last quarter, Marriott Vacations Worldwide insiders have spent a meaningful amount on shares. In total, insiders bought US$523k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of Marriott Vacations Worldwide

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 2.7% of Marriott Vacations Worldwide shares, worth about US$64m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Marriott Vacations Worldwide Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Marriott Vacations Worldwide shares, given these transactions (along with notable insider ownership of the company). 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 2 warning signs for Marriott Vacations Worldwide you should be aware of, and 1 of these is potentially serious.

Of course Marriott Vacations Worldwide may not be the best stock to buy. So you may wish to see this free collection of high quality 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.