Some The Interpublic Group of Companies, Inc. (NYSE:IPG) shareholders may be a little concerned to see that the Chairman & CEO, Michael Roth, recently sold a whopping US$2.2m worth of stock at a price of US$22.04 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.1%.
Interpublic Group of Companies Insider Transactions Over The Last Year
Notably, that recent sale by Chairman & CEO Michael Roth was not the only time they sold Interpublic Group of Companies shares this year. Earlier in the year, they fetched US$22.95 per share in a -US$4.6m sale. So we know that an insider sold shares at around the present share price of US$21.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 17300 shares worth US$400k. But insiders sold 509831 shares worth US$12m. Over the last year we saw more insider selling of Interpublic Group of Companies shares, than buying. 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!
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Insider Ownership of Interpublic Group of Companies
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. We usually like to see fairly high levels of insider ownership. It appears that Interpublic Group of Companies insiders own 0.7% of the company, worth about US$58m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Interpublic Group of Companies Insider Transactions Indicate?
An insider hasn't bought Interpublic Group of Companies 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. But it is good to see that Interpublic Group of Companies is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in Interpublic Group of Companies, you should check out this free report on analyst forecasts for the company.
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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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