Have Insiders Sold Citigroup Shares Recently?

We wouldn't blame Citigroup Inc. (NYSE:C) shareholders if they were a little worried about the fact that Mark Mason, the Chief Financial Officer recently netted about US$4.9m selling shares at an average price of US$83.21. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

Check out our latest analysis for Citigroup

The Last 12 Months Of Insider Transactions At Citigroup

Notably, that recent sale by Mark Mason is the biggest insider sale of Citigroup shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$83.94. 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. 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. This single sale was just 21% of Mark Mason's stake.

In the last year Citigroup insiders didn't buy any company stock. 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 Citigroup better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Citigroup

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Citigroup insiders own 0.2% of the company, currently worth about US$334m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Citigroup Insiders?

Insiders sold Citigroup shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Citigroup is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Citigroup has 1 warning sign and it would be unwise to ignore this.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.