Who sold the shares of Greif, Inc. (NYSE: GEF)?
We often see insiders buying back shares of companies that are performing well over the long term. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. We will therefore examine whether insiders have bought or sold shares of Greif, Inc. (NYSE: FEM).
What is insider selling?
It is quite normal to see company insiders, such as board members, trading company shares from time to time. However, most countries require the company to disclose these transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have done. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Harvard University study found that “insider buying generates abnormal returns of over 6% per year.”
See our latest review for Greif
Greif’s insider trading in the past year
Over the past year, we can see that the biggest insider sale came from Executive Vice President Gary Martz for $ 1.4 million in shares, at around $ 58.00 per share. . So what is clear is that an insider saw fit to sell around the current price of US $ 57.72. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. In this case, the big sale took place around the current price, so it’s not too bad (but it’s still not positive).
Over the past year, we’ve seen more insiders selling Greif shares than buying. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
If you are like me then you do not want to miss it free list of growing companies that insiders buy.
Greif insiders sell the stock
We’ve seen quite a bit of insider selling at Greif, over the past three months. Executive Vice President Gary Martz only sold US $ 32,000 of shares during this period. Neither the lack of buying nor the presence of selling is encouraging. But the quantity sold is not enough for us to give it weight.
Greif insider ownership
Many investors like to check how well a company is owned by insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. It’s great to see that Greif insiders own 35% of the company, worth around $ 977 million. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
What could insider trading at Greif tell us?
While there have been no insider buying in the past three months, there have been some sales. However, sales are not important enough to be of concern to us at all. It’s great to see high levels of insider ownership, but looking back over the last year, we’re not gaining the trust of the Greif insiders selling. So these insider trading can help us build a stock thesis, but it’s also worth knowing the risks this business faces. At Simply Wall St, we found 1 warning sign for Greif that deserve your attention before buying stocks.
But beware : Greif might not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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