Some The Goldman Sachs Group, Inc. (NYSE:GS) shareholders may be a little concerned to see that insider Brian Lee recently sold a substantial US$4.0m worth of stock at a price of US$290 per share. That’s a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.
See our latest analysis for Goldman Sachs Group
The Last 12 Months Of Insider Transactions At Goldman Sachs Group
The Non-Executive Director, David Viniar, made the biggest insider sale in the last 12 months. That single transaction was for US$6.1m worth of shares at a price of US$243 each. That means that even when the share price was below the current price of US$289, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. We note that the biggest single sale was only 2.7% of David Viniar’s holding.
Insiders in Goldman Sachs Group didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Goldman Sachs Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Goldman Sachs Group insiders own 0.5% of the company, currently worth about US$506m based on the recent share price. 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 Goldman Sachs Group Tell Us?
Insiders haven’t bought Goldman Sachs Group 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. On the plus side, Goldman Sachs Group makes money, and is growing profits. 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. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For instance, we’ve identified 4 warning signs for Goldman Sachs Group (1 doesn’t sit too well with us) you should be aware of.
But note: Goldman Sachs 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. 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.
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