Do Carnival Insiders Know Something We Should?
The COVID-19 pandemic has surely sunk Carnival Cruise Line (NYSE: CCL), right? There's no way the company could recover from the immense negative publicity and dockets filling with pending lawsuits, right? Well, some insiders are holding out hope — and one even made a $10 million bet on its future. Even the Kingdom of Saudi Arabia bought an 8.2% stake. Let's see whether these votes of confidence suggest that investors should start boarding.
Image source: Carnival Cruise Lines.
One of the classic greenlights to getting in on a stock is when insiders do. These can be C-level executives, other higher-ups, members of a board of directors, or even certain shareholders. They are heavily bought in to a company, and their confidence in its future performance spurs them to buy low, confident that the stock will go high. Maybe they're just good company people, loyal to the brand. Maybe they are experts in their industry and are skilled in making lemonade from lemons.
Source Fool.com