Senior VP & CFO Daniel McHenry Sold A Bunch Of Shares In Group 1 Automotive

We wouldn't blame Group 1 Automotive, Inc. (NYSE:GPI) shareholders if they were a little worried about the fact that Daniel McHenry, the Senior VP & CFO recently netted about US$2.7m selling shares at an average price of US$442. That's a big disposal, and it decreased their holding size by 30%, which is notable but not too bad.

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Group 1 Automotive Insider Transactions Over The Last Year

In fact, the recent sale by Daniel McHenry was the biggest sale of Group 1 Automotive shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$425. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Group 1 Automotive insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Group 1 Automotive

I will like Group 1 Automotive better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Group 1 Automotive insiders own 2.2% of the company, worth about US$122m. 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 Group 1 Automotive Tell Us?

Insiders sold Group 1 Automotive shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Group 1 Automotive. For example, Group 1 Automotive has 2 warning signs (and 1 which is significant) we think you should know about.

But note: Group 1 Automotive 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 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.