This Insider Has Just Sold Shares In Group 1 Automotive

Some Group 1 Automotive, Inc. (NYSE:GPI) shareholders may be a little concerned to see that the Director, Lincoln da Cunha Pereira Filho, recently sold a substantial US$2.6m worth of stock at a price of US$427 per share. However, that sale only accounted for 5.6% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Group 1 Automotive

The Last 12 Months Of Insider Transactions At Group 1 Automotive

Notably, that recent sale by Lincoln da Cunha Pereira Filho is the biggest insider sale of Group 1 Automotive 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$415. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Insiders in Group 1 Automotive didn't buy any shares in the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Group 1 Automotive

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 Group 1 Automotive insiders own 2.3% of the company, worth about US$124m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Group 1 Automotive Insiders?

Insiders sold Group 1 Automotive shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Group 1 Automotive you should be aware of, and 1 of these is potentially serious.

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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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.