We wouldn't blame The Goldman Sachs Group, Inc. (NYSE:GS) shareholders if they were a little worried about the fact that Thomas Montag, the Independent Director recently netted about US$5.1m selling shares at an average price of US$505. However, that sale only accounted for 4.8% of their holding, so arguably it doesn't say much about their conviction.

Goldman Sachs Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, John F. Rogers, sold US$6.9m worth of shares at a price of US$468 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$485. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of John F. Rogers's holding.

Goldman Sachs Group insiders didn't buy any shares over 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!

I will like Goldman Sachs Group 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Goldman Sachs Group insiders own 0.5% of the company, currently worth about US$787m based on the recent share price. 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 Goldman Sachs Group Insider Transactions Indicate?

Insiders haven't bought Goldman Sachs Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Goldman Sachs Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Goldman Sachs Group and we suggest you have a look.

But note: Goldman Sachs Group 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.

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