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In the last year, many Global Payments Inc. (NYSE:GPN) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Global Payments
The Last 12 Months Of Insider Transactions At Global Payments
Over the last year, we can see that the biggest insider sale was by the Chief Administrative Officer, David Green, for US$2.0m worth of shares, at about US$105 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$118. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 23% of David Green's stake.
Over the last year we saw more insider selling of Global Payments shares, than buying. 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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insiders At Global Payments Have Sold Stock Recently
The last quarter saw substantial insider selling of Global Payments shares. In total, insiders sold US$2.3m 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.
Does Global Payments Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Global Payments insiders own 0.7% of the company, worth about US$200m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.