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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. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
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.
The Last 12 Months Of Insider Transactions At Goldman Sachs Group
The Independent Director, Thomas Montag, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$601 each. That means that an insider was selling shares at around the current price of US$548. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$3.5m for 6.39k shares. But insiders sold 123.54k shares worth US$69m. All up, insiders sold more shares in Goldman Sachs Group than they bought, 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!
View our latest analysis for Goldman Sachs Group
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Goldman Sachs Group Insiders Bought Stock Recently
At Goldman Sachs Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, insider John Hess bought US$2.0m worth of shares in that time. But we did see Chairman & CEO David Solomon sell shares worth US$1.5m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Goldman Sachs Group insiders own 0.5% of the company, worth about US$864m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.