Some The Goldman Sachs Group, Inc. (NYSE:GS) shareholders may be a little concerned to see that the Non-Executive Director, David Viniar, recently sold a substantial US$1.9m worth of stock at a price of US$372 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 0.6%.
Goldman Sachs Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Brian Lee, for US$4.0m worth of shares, at about US$296 per share. That means that even when the share price was below the current price of US$369, an insider wanted to cash in some shares. 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 just 28% of Brian Lee's stake.
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!
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Insider Ownership of Goldman Sachs Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Goldman Sachs Group insiders own 0.5% of the company, currently worth about US$594m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Goldman Sachs Group Insiders?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Goldman Sachs Group makes money, and is growing profits. 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. Be aware that Goldman Sachs Group is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...
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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.
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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