8.0%of this General Dynamics Corporation (NYSE:GD) insider's holdings were sold in the last year

Looking at General Dynamics Corporation's (NYSE:GD ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for General Dynamics

General Dynamics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior VP, Gregory Gallopoulos, for US$2.5m worth of shares, at about US$228 per share. So we know that an insider sold shares at around the present share price of US$227. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Gregory Gallopoulos was the only individual insider to sell over the last year.

Gregory Gallopoulos ditched 21.77k shares over the year. The average price per share was US$233. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At General Dynamics Have Sold Stock Recently

The last quarter saw substantial insider selling of General Dynamics shares. In total, Senior VP Gregory Gallopoulos dumped US$2.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of General Dynamics

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. General Dynamics insiders own about US$3.9b worth of shares (which is 6.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The General Dynamics Insider Transactions Indicate?

An insider hasn't bought General Dynamics stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that General Dynamics 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. 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 2 warning signs for General Dynamics and we suggest you have a look.

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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, but not derivative transactions.

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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.