This Insider Has Just Sold Shares In General Motors

We wouldn't blame General Motors Company (NYSE:GM) shareholders if they were a little worried about the fact that Craig Glidden, the EVP of Legal recently netted about US$2.1m selling shares at an average price of US$40.09. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for General Motors

General Motors Insider Transactions Over The Last Year

In fact, the recent sale by Craig Glidden was the biggest sale of General Motors shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$40.98). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 19%of Craig Glidden's holding.

In total, General Motors insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like General Motors better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does General Motors Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. General Motors insiders own 0.3% of the company, currently worth about US$132m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The General Motors Insider Transactions Indicate?

Insiders haven't bought General Motors stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that General Motors is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing General Motors. At Simply Wall St, we've found that General Motors has 3 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course General Motors 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.