Stock Analysis

One General Dynamics Corporation (NYSE:GD) insider reduced their stake by 8.0% in the previous year

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Insiders were net sellers of General Dynamics Corporation's (NYSE:GD ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for General Dynamics

The Last 12 Months Of Insider Transactions At General Dynamics

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 what is clear is that an insider saw fit to sell at around the current price of US$226. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was Gregory Gallopoulos.

Gregory Gallopoulos divested 21.77k shares over the last 12 months at an average price of US$233. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:GD Insider Trading Volume March 29th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does General Dynamics Boast High Insider Ownership?

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$3.8b worth of shares (which is 6.2% 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 Does This Data Suggest About General Dynamics Insiders?

It doesn't really mean much that no insider has traded General Dynamics shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of General Dynamics insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing General Dynamics. You'd be interested to know, that we found 1 warning sign for General Dynamics and we suggest you have a look.

But note: General Dynamics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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