The Senior VP & Chief Accounting Officer of Omnicom Group Inc. (NYSE:OMC), Andrew Castellaneta, Just Sold 34% Of Their Holding

Some Omnicom Group Inc. (NYSE:OMC) shareholders may be a little concerned to see that the Senior VP & Chief Accounting Officer, Andrew Castellaneta, recently sold a substantial US$557k worth of stock at a price of US$92.80 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Omnicom Group

The Last 12 Months Of Insider Transactions At Omnicom Group

In the last twelve months, the biggest single sale by an insider was when the insider, Michael O'Brien, sold US$1.3m worth of shares at a price of US$70.47 per share. That means that an insider was selling shares at slightly below the current price (US$93.20). 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 24% of Michael O'Brien's holding.

Insiders in Omnicom Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Omnicom Group insiders own 0.9% of the company, worth about US$176m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Omnicom Group Insider Transactions Indicate?

An insider hasn't bought Omnicom 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. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Omnicom Group. Every company has risks, and we've spotted 1 warning sign for Omnicom Group you should know about.

But note: Omnicom 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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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.