Have GEO Group Insiders Been Selling Stock?

Some The GEO Group, Inc. (NYSE:GEO) shareholders may be a little concerned to see that the Founder & Executive Chairman of the Board, George Zoley, recently sold a substantial US$1.6m worth of stock at a price of US$21.36 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 1.8%.

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GEO Group Insider Transactions Over The Last Year

In fact, the recent sale by George Zoley was the biggest sale of GEO Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$21.43. While insider selling is a negative, to us, it is more negative if the shares are sold 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).

GEO Group insiders didn't buy any shares 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!

Check out our latest analysis for GEO Group

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. GEO Group insiders own 4.4% of the company, currently worth about US$128m based on the recent share price. 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 Do The GEO Group Insider Transactions Indicate?

An insider hasn't bought GEO Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, GEO Group makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in GEO Group.

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

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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.