When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Galaxy Digital Holdings Ltd.'s (TSE:GLXY) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Galaxy Digital Holdings
Galaxy Digital Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Manager & Director Richard Tavoso for CA$360k worth of shares, at about CA$3.65 per share. We do like to see buying, but this purchase was made at well below the current price of CA$4.99. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$718k for 200.00k shares. But insiders sold 50.00k shares worth CA$275k. Overall, Galaxy Digital Holdings insiders were net buyers during 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!
Galaxy Digital Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Galaxy Digital Holdings Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Galaxy Digital Holdings. Specifically, Senior Advisor & Director Damien Vanderwilt ditched CA$275k 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.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Galaxy Digital Holdings insiders own about CA$23m worth of shares. That equates to 1.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Galaxy Digital Holdings Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Galaxy Digital Holdings. For example, Galaxy Digital Holdings has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about.