Over the past year, many The Goldman Sachs Group, Inc. (NYSE:GS) insiders sold a significant stake in the company which may have piqued investors' interest. 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, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Goldman Sachs Group

The Last 12 Months Of Insider Transactions At Goldman Sachs Group

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Thomas Montag, sold US$12m worth of shares at a price of US$601 per share. That means that even when the share price was below the current price of US$622, an insider wanted to cash in some shares. 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. This single sale was just 10% of Thomas Montag's stake.

Happily, we note that in the last year insiders paid US$1.5m for 2.48k shares. On the other hand they divested 128.54k shares, for US$71m. Over the last year we saw more insider selling of Goldman Sachs Group shares, than buying. 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!

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Goldman Sachs Group Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Goldman Sachs Group shares over the last three months. In total, insiders sold US$8.4m worth of shares in that time. Meanwhile insider Kevin Johnson bought US$1.5m worth. Generally this level of net selling might be considered a bit bearish.

Does Goldman Sachs Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Goldman Sachs Group insiders own about US$882m worth of shares (which is 0.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Goldman Sachs Group Insider Transactions Indicate?

The stark truth for Goldman Sachs Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Goldman Sachs Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Goldman Sachs Group you should know about.

Of course Goldman Sachs Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.