Selling US$2.6m Of Galaxy Digital Holdings Stock Rewarded Insiders

Even though Galaxy Digital Holdings Ltd. (TSE:GLXY) stock gained 13% last week, insiders who sold US$2.6m worth of stock over the past year are probably better off. Selling at an average price of US$6.58, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Galaxy Digital Holdings

Galaxy Digital Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior Advisor & Director, Damien Vanderwilt, for CA$1.0m worth of shares, at about CA$5.14 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$10.75. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 34% of Damien Vanderwilt's holding. Damien Vanderwilt was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 200.00k shares worth CA$718k. On the other hand they divested 400.00k shares, for CA$2.6m. Damien Vanderwilt ditched 400.00k shares over the year. The average price per share was US$6.58. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Galaxy Digital Holdings Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Galaxy Digital Holdings. In total, Senior Advisor & Director Damien Vanderwilt sold CA$2.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

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 1.3% of Galaxy Digital Holdings shares, worth about CA$41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Galaxy Digital Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. At Simply Wall St, we've found that Galaxy Digital Holdings has 4 warning signs (3 don't sit too well with us!) that deserve your attention before going any further with your analysis.

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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.