Golden Ocean Group Insider Lowered Holding By 100% During Last Year

Viewing insider transactions for Golden Ocean Group Limited's (NASDAQ:GOGL ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Golden Ocean Group

Golden Ocean Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Interim CEO & CFO of Golden Ocean Management AS, Peder Carl Simonsen, for US$2.5m worth of shares, at about US$12.62 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.96. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Peder Carl Simonsen's stake. Peder Carl Simonsen was the only individual insider to sell shares in the last twelve months.

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!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Golden Ocean Group insiders own about US$225k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.

So What Does This Data Suggest About Golden Ocean Group Insiders?

It doesn't really mean much that no insider has traded Golden Ocean Group shares in the last quarter. Our analysis of Golden Ocean Group insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Golden Ocean Group has 3 warning signs and it would be unwise to ignore these.

Of course Golden Ocean 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