Whilst it may not be a huge deal, we thought it was good to see that the Global Payments Inc. (NYSE:GPN) Independent Director, Joia Johnson, recently bought US$98k worth of stock, for US$197 per share. Although the purchase is not a big one, increasing their shareholding by only 8.8%, it can be interpreted as a good sign.
Global Payments Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Jeffrey Sloan, sold US$10m worth of shares at a price of US$198 per share. So we know that an insider sold shares at around the present share price of US$194. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).
In total, Global Payments insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Global Payments
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Global Payments insiders own 0.7% of the company, worth about US$407m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Global Payments Tell Us?
The stark truth for Global Payments 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 Global Payments 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. 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. While conducting our analysis, we found that Global Payments has 2 warning signs and it would be unwise to ignore them.
Of course Global Payments 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, but not derivative transactions.
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