Don't Ignore The Fact That This Insider Just Sold Some Shares In GAMCO Investors, Inc. (NYSE:GBL)

By
Simply Wall St
Published
September 09, 2021
NYSE:GBL
Source: Shutterstock

Investors may wish to note that the Senior VP of GAMCO Investors, Inc., Kieran Caterina, recently netted US$54k from selling stock, receiving an average price of US$27.06. It wasn't a huge sale, but it did reduce their holding by 11%. This does not instill confidence.

View our latest analysis for GAMCO Investors

The Last 12 Months Of Insider Transactions At GAMCO Investors

In fact, the recent sale by Kieran Caterina was the biggest sale of GAMCO Investors shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$26.70. 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.

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

insider-trading-volume
NYSE:GBL Insider Trading Volume September 10th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of GAMCO Investors

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 3.4% of GAMCO Investors shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At GAMCO Investors Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since GAMCO Investors is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that GAMCO Investors has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

But note: GAMCO Investors 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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