We wouldn't blame The Goldman Sachs Group, Inc. (NYSE:GS) shareholders if they were a little worried about the fact that David Viniar, the Non-Executive Director recently netted about US$1.9m selling shares at an average price of US$372. However, that sale only accounted for 0.6% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Goldman Sachs Group
The insider, Brian Lee, made the biggest insider sale in the last 12 months. That single transaction was for US$4.0m worth of shares at a price of US$296 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$369. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 28% of Brian Lee's holding.
Insiders in Goldman Sachs Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Goldman Sachs Group insiders own 0.5% of the company, worth about US$594m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Goldman Sachs Group Tell Us?
Insiders haven't bought Goldman Sachs Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Goldman Sachs Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. Be aware that Goldman Sachs Group is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...
But note: Goldman Sachs Group 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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