GEO Group Insiders Land Bargain With Gains Of US$3.5m

Insiders who purchased The GEO Group, Inc. (NYSE:GEO) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. After accounting for the recent loss, the US$3.07m worth of shares they purchased is now worth US$6.59m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At GEO Group

Over the last year, we can see that the biggest insider purchase was by Founder & Executive Chairman of the Board George Zoley for US$3.1m worth of shares, at about US$12.34 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$26.37. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for GEO Group

GEO Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At GEO Group Have Sold Stock Recently

The last three months saw significant insider selling at GEO Group. In total, insiders dumped US$148k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does GEO Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. GEO Group insiders own about US$163m worth of shares (which is 4.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At GEO Group Tell Us?

Insiders sold stock recently, but they haven't been buying. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. While it's good to be aware of 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. At Simply Wall St, we've found that GEO Group has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.