Top-level insiders such as CEOs and Chairmen tend to have an excellent understanding of their companies’ prospects. If they’re buying company stock, it’s typically a sign that they’re confident about the future and that they expect the share price to rise.
In this report, we are going to highlight a large purchase from a top-level insider at Booking Holdings Inc (BKNG:US). Booking Holdings is a provider of online travel and restaurant reservation services. Its brands include booking.com, priceline.com, kayak, and OpenTable. The company is listed on the Nasdaq and currently has a market cap of $86.5 billion.
Insider buying at Booking Holdings
Our insider transaction data shows that on August 8, Booking Holdings’ Chairman Robert Mylod purchased 500 shares at a price of $1,934.44 per share. This trade cost the insider $967,220 and increased his holding to 2,080 shares.
My Mylod has substantial company experience. Before he was elected as Chairman, in June 2020, he served in several top-level positions at Booking Holdings, including Head of Worldwide Strategy and Planning, and Chief Financial Officer.
He also has experience in the investment world. Currently, he is Managing Partner at Annox Capital Management, a private investment firm that he founded in 2013. Earlier in his career, he was a Principal at Stonington Partners, a private equity investment firm.
Given his background, he is likely to have an excellent understanding of Booking Holdings’ prospects, and its investment potential.
Strong Q2 results
Booking Holdings recently posted a strong set of Q2 results on the back of a surge in global travel bookings.
For the period, total revenue amounted to $4.3 billion, an increase of 99% from the prior-year quarter. Meanwhile, net income came in at $857 million, compared with a net loss of $167 million a year earlier.
Encouragingly, room nights for the second quarter surpassed 2019 levels for the first time since the Covid-19 pandemic. The company noted that it continued to see very strong accommodation ADR growth, which helped drive a near-40% increase in gross bookings, versus the second quarter of 2019.
As for guidance, management was confident that the momentum will continue. "Looking forward, we expect record Q3 revenue and are very busy working with our customers and partners to help enable an extremely busy summer travel season," said CEO Glenn Fogel.
In light of these strong results, we see the insider buying here as a bullish indicator.