Yahoo Finance Global Payments Inc. (NYSE:GPN) insiders sold US$3.2m worth of stock, possibly signalling a downtrend
Over the past year, many Global Payments Inc. (NYSE:GPN) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Global Payments
Global Payments Insider Transactions Over The Last Year
The Senior EVP, David Green, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$130 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$116). So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 8.65k shares worth US$835k. But insiders sold 25.57k shares worth US$3.2m. All up, insiders sold more shares in Global Payments than they bought, 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Global Payments Insiders Bought Stock Recently
Over the last quarter, Global Payments insiders have spent a meaningful amount on shares. We can see that Independent Director Robert H. Baldwin paid US$335k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Global Payments Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Global Payments insiders own 0.9% of the company, worth about US$273m. 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 Global Payments Insider Transactions Indicate?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Global Payments insiders are fairly aligned, and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Global Payments has 3 warning signs (and 1 which is concerning) we think you should know about.
But note: Global Payments 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, but not derivative transactions.
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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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