This Insider Has Just Sold Shares In Goldman Sachs Group

Some The Goldman Sachs Group, Inc. (NYSE:GS) shareholders may be a little concerned to see that the Independent Director, Thomas Montag, recently sold a substantial US$5.1m worth of stock at a price of US$505 per share. However, that sale only accounted for 4.8% of their holding, so arguably it doesn't say much about their conviction.

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Goldman Sachs Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, John F. Rogers, sold US$6.9m worth of shares at a price of US$468 per share. That means that even when the share price was below the current price of US$485, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13% of John F. Rogers's holding.

In the last year Goldman Sachs Group 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Goldman Sachs Group 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. Goldman Sachs Group insiders own about US$785m worth of shares (which is 0.5% 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 Goldman Sachs Group Insider Transactions Indicate?

Insiders sold Goldman Sachs Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Goldman Sachs Group 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. 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. Case in point: We've spotted 2 warning signs for Goldman Sachs Group you should be aware of.

Of course Goldman Sachs Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com