Some Group 1 Automotive, Inc. (NYSE:GPI) shareholders may be a little concerned to see that the Director, Lincoln da Cunha Pereira Filho, recently sold a substantial US$2.6m worth of stock at a price of US$427 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 5.6%.
The Last 12 Months Of Insider Transactions At Group 1 Automotive
In fact, the recent sale by Lincoln da Cunha Pereira Filho was the biggest sale of Group 1 Automotive shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$415. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Group 1 Automotive didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Group 1 Automotive better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Group 1 Automotive
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Group 1 Automotive insiders own about US$124m worth of shares (which is 2.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Group 1 Automotive Insider Transactions Indicate?
Insiders sold Group 1 Automotive shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Group 1 Automotive. Every company has risks, and we've spotted 2 warning signs for Group 1 Automotive (of which 1 can't be ignored!) you should know about.
But note: Group 1 Automotive may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
