By selling US$2.2m worth of The Goodyear Tire & Rubber Company (NASDAQ:GT) stock at an average sell price of US$22.33 over the last year, insiders seemed to have made the most of their holdings. The company’s market valuation decreased by US$328m after the stock price dropped 10% over the past week, but insiders were spared from painful losses.
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.
If you’re not interested in researching GT’s insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!
The Last 12 Months Of Insider Transactions At Goodyear Tire & Rubber
In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, Richard Kramer, sold US$2.2m worth of shares at a price of US$22.33 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$10.09. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Richard Kramer.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Goodyear Tire & Rubber better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Goodyear Tire & Rubber
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of Goodyear Tire & Rubber shares, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Goodyear Tire & Rubber Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Goodyear Tire & Rubber shares in the last quarter. Still, the insider transactions at Goodyear Tire & Rubber in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. In terms of investment risks, we’ve identified 1 warning sign with Goodyear Tire & Rubber and understanding it should be part of your investment process.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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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