Trade Alert: President & Chief Investment Officer Of Galaxy Digital Christopher Ferraro Has Sold Stock

Some Galaxy Digital Inc. (NASDAQ:GLXY) shareholders may be a little concerned to see that the President & Chief Investment Officer, Christopher Ferraro, recently sold a substantial US$27m worth of stock at a price of US$36.00 per share. That diminished their holding by a very significant 64%, which arguably implies a strong desire to reallocate capital.

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Galaxy Digital Insider Transactions Over The Last Year

In fact, the recent sale by Christopher Ferraro was the biggest sale of Galaxy Digital 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$37.78). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 64% of Christopher Ferraro's holding.

In the last year Galaxy Digital insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Galaxy Digital

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Does Galaxy Digital Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Galaxy Digital insiders own about US$165m worth of shares (which is 1.1% of the company). 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 Do The Galaxy Digital Insider Transactions Indicate?

Insiders sold Galaxy Digital shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Galaxy Digital has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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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 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.