The Goldman Sachs Group, Inc.'s (NYSE:GS) stock price has dropped 5.4% in the previous week, but insiders who sold US$19m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$362 is still below the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Goldman Sachs Group
Over the last year, we can see that the biggest insider sale was by the President & COO, John Waldron, for US$5.2m worth of shares, at about US$387 per share. That means that an insider was selling shares at around the current price of US$363. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).
In the last year Goldman Sachs Group insiders didn't buy any company stock. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At Goldman Sachs Group Have Sold Stock Recently
The last three months saw significant insider selling at Goldman Sachs Group. Specifically, insiders ditched US$12m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. It's great to see that Goldman Sachs Group insiders own 0.4% of the company, worth about US$539m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Goldman Sachs Group Insider Transactions Indicate?
Insiders haven't bought Goldman Sachs Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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 Goldman Sachs Group. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Goldman Sachs Group.
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, but not derivative transactions.
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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.
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