Goodyear Tire & Rubber Senior VP & General Counsel David Phillips Sells 100% Of Holding

Some The Goodyear Tire & Rubber Company (NASDAQ:GT) shareholders may be a little concerned to see that the Senior VP & General Counsel, David Phillips, recently sold a substantial US$608k worth of stock at a price of US$7.89 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Goodyear Tire & Rubber

The Last 12 Months Of Insider Transactions At Goodyear Tire & Rubber

In fact, the recent sale by David Phillips was the biggest sale of Goodyear Tire & Rubber shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$8.28, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of David Phillips's holding.

Over the last year, we can see that insiders have bought 147.70k shares worth US$1.4m. But they sold 77.01k shares for US$608k. In total, Goodyear Tire & Rubber insiders bought more than they sold over the last year. They paid about US$9.15 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Goodyear Tire & Rubber is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Goodyear Tire & Rubber insiders own 0.8% of the company, worth about US$17m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Goodyear Tire & Rubber Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Goodyear Tire & Rubber we think they are probably pretty confident of a bright future. 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. You'd be interested to know, that we found 1 warning sign for Goodyear Tire & Rubber and we suggest you have a look.

Of course Goodyear Tire & Rubber 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.