Global Payments Senior EVP & CFO Joshua Whipple Sells 48% Of Holding

We wouldn't blame Global Payments Inc. (NYSE:GPN) shareholders if they were a little worried about the fact that Joshua Whipple, the Senior EVP & CFO recently netted about US$4.7m selling shares at an average price of US$127. That sale reduced their total holding by 48% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Global Payments

Global Payments Insider Transactions Over The Last Year

Notably, that recent sale by Joshua Whipple is the biggest insider sale of Global Payments shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$126. 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.

Happily, we note that in the last year insiders paid US$835k for 8.65k shares. But insiders sold 59.98k shares worth US$7.4m. In total, Global Payments insiders sold more than they bought over the last year. 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!

I will like Global Payments 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 Global Payments Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Global Payments insiders own 0.9% of the company, worth about US$288m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Global Payments Tell Us?

Insiders sold Global Payments shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Global Payments is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 3 warning signs for Global Payments (1 doesn't sit too well with us) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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