Melanie Healey, a director at Hilton Worldwide Holdings (HLT), recently bought 2,000 shares. The buy increased her stake by 15%, and came to a total cost of $399,299.
This is the first insider buy in just over a year. Another director bought 695 shares for just under $100,000 in May 2023. Otherwise, company insiders have been slight sellers of shares in the last year, with most of those sales coming following the exercise of stock options.
Overall, Hilton insiders own 2.1% of shares.
Hilton shares are up 42% in the past year. Strong tourism and travel demand has pushed earnings 29% higher, and revenues are up 12%.
The hotel chain also sports a 27% profit margin, a good sign that business remains strong and the company’s brand remains popular.
Shares now trade at 28 times forward earnings, a slight premium to the overall market.
Action to take: Shares have pulled back about 8% from their recent highs, and may be nearing a support level where they could trend higher. Investors may like shares here for a slight rebound in the coming weeks.
Hilton currently pays a 0.3% dividend.
For traders, the July $210 calls, last trading for about $1.60, could see mid-to-high double-digit gains if shares bounce higher in the coming weeks.
The option may not move in-the-money, so traders should look to take quick profits.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.