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$3.3m worth of stock at a price of US$469 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.5%.

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Group 1 Automotive Insider Transactions Over The Last Year

In fact, the recent sale by Lincoln da Cunha Pereira Filho was the biggest sale of Group 1 Automotive shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$478). 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 7.5% of Lincoln da Cunha Pereira Filho's holding.

Group 1 Automotive insiders didn't buy any shares over 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!

Check out our latest analysis for Group 1 Automotive

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

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. 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 2.2% of the company, worth about US$132m. 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 Group 1 Automotive Tell Us?

Insiders haven't bought Group 1 Automotive stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. Every company has risks, and we've spotted 2 warning signs for Group 1 Automotive (of which 1 makes us a bit uncomfortable!) you should know about.

Of course Group 1 Automotive 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.