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The fact that multiple The Goldman Sachs Group, Inc. (NYSE:GS) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Goldman Sachs Group
Goldman Sachs Group Insider Transactions Over The Last Year
The President & COO, John Waldron, made the biggest insider sale in the last 12 months. That single transaction was for US$5.2m worth of shares at a price of US$387 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$343. So it may not shed much light on insider confidence at current levels.
Goldman Sachs Group insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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
Over the last three months, we've seen 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. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Goldman Sachs Group
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. Goldman Sachs Group insiders own about US$510m worth of shares (which is 0.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. 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. At Simply Wall St, we found 2 warning signs for Goldman Sachs Group that deserve your attention before buying any shares.