Some Global Payments Inc. (NYSE:GPN) shareholders may be a little concerned to see that the Chief Administrative Officer, David Green, recently sold a substantial US$2.0m worth of stock at a price of US$105 per share. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

Global Payments Insider Transactions Over The Last Year

Notably, that recent sale by David Green is the biggest insider sale of Global Payments shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$104. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

All up, insiders sold more shares in Global Payments 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Global Payments

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Global Payments insiders own 0.7% of the company, currently worth about US$177m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Global Payments Insider Transactions Indicate?

Insiders haven't bought Global Payments stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Global Payments makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Global Payments. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Global Payments.

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 of direct interests only, but not derivative transactions or indirect interests.

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