Consumer Durables News

This Insider Has Just Sold Shares In Garmin Ltd. (NYSE:GRMN)

We note that the Garmin Ltd. (NYSE:GRMN) Executive VP & MD of Aviation – Garmin International, Philip Straub, recently sold US$18k worth of stock for US$86.34 per share. However we note that the sale only shrunk their holding by 0.3%.

Check out our latest analysis for Garmin

The Last 12 Months Of Insider Transactions At Garmin

In the last twelve months, the biggest single sale by an insider was when the President, Clifton Albert Pemble, sold US$1.6m worth of shares at a price of US$97.81 per share. So we know that an insider sold shares at around the present share price of US$92.53. While we don’t usually like to see insider selling, it’s more concerning if the sales take place 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 the last year Garmin insiders didn’t buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:GRMN Insider Trading Volume November 16th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. It’s great to see that Garmin insiders own 20% of the company, worth about US$3.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Garmin Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we’re not worried. While we feel good about high insider ownership of Garmin, we can’t say the same about the selling of shares. 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. While conducting our analysis, we found that Garmin has 1 warning sign and it would be unwise to ignore this.

But note: Garmin may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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