Have Insiders Sold General Dynamics Corporation (NYSE:GD) Shares Recently?

We wouldn't blame General Dynamics Corporation (NYSE:GD) shareholders if they were a little worried about the fact that Gregory Gallopoulos, the Senior VP recently netted about US$2.5m selling shares at an average price of US$238. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.1%.

Check out our latest analysis for General Dynamics

General Dynamics Insider Transactions Over The Last Year

Notably, that recent sale by Gregory Gallopoulos is the biggest insider sale of General Dynamics 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$239. 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. 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 only 7.1% of Gregory Gallopoulos's holding.

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 Dynamics 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 Dynamics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. It's great to see that General Dynamics insiders own 6.2% of the company, worth about US$4.1b. 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 General Dynamics Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that General Dynamics is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for General Dynamics you should be aware of.

Of course General Dynamics 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, 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.