We'd be surprised if Omnicom Group Inc. (NYSE:OMC) shareholders haven't noticed that the Senior VP & Chief Accounting Officer, Andrew Castellaneta, recently sold US$227k worth of stock at US$75.78 per share. That sale was 21% of their holding, so it does make us raise an eyebrow.
Omnicom Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, John Wren, for US$4.8m worth of shares, at about US$79.84 per share. So we know that an insider sold shares at around the present share price of US$76.47. 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.
Over the last year, we note insiders sold 79547 shares worth US$6.3m. Insiders in Omnicom Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Omnicom Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Omnicom Group Boast High Insider Ownership?
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. Omnicom Group insiders own about US$118m worth of shares (which is 0.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Omnicom Group Insider Transactions Indicate?
Insiders haven't bought Omnicom Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Omnicom Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Omnicom Group.
Of course Omnicom Group 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, but not derivative transactions.
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