We wouldn't blame Citigroup Inc. (NYSE:C) shareholders if they were a little worried about the fact that Michael Whitaker, the Head of Operations & Technology recently netted about US$1.5m selling shares at an average price of US$74.56. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Citigroup
In fact, the recent sale by Michael Whitaker was the biggest sale of Citigroup shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$75.08. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14%of Michael Whitaker's holding.
All up, insiders sold more shares in Citigroup than they bought, over the last year. 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!NYSE:C Insider Trading Volume May 9th 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Citigroup
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Citigroup insiders own 0.1% of the company, worth about US$220m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Citigroup Insiders?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. To that end, you should learn about the 2 warning signs we've spotted with Citigroup (including 1 which is significant).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
This article by Simply Wall St is general in nature. 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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