We wouldn't blame The Carlyle Group Inc. (NASDAQ:CG) shareholders if they were a little worried about the fact that Kewsong Lee, the CEO & Director recently netted about US$18m selling shares at an average price of US$48.90. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.
Carlyle Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Co-Founder & Chairman Emeritus, Daniel D'Aniello, for US$236m worth of shares, at about US$47.10 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$47.21. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of Daniel D'Aniello's holding.
Insiders in Carlyle Group 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Carlyle Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Carlyle Group
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Carlyle Group insiders own about US$5.4b worth of shares (which is 32% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Carlyle Group Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Carlyle Group is growing earnings. 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 Carlyle Group. You'd be interested to know, that we found 4 warning signs for Carlyle Group and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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