Potential Galaxy Digital Inc. (NASDAQ:GLXY) shareholders may wish to note that the Independent Director, Steven Bandrowczak, recently bought US$100k worth of stock, paying US$19.63 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

The Last 12 Months Of Insider Transactions At Galaxy Digital

The President & Chief Investment Officer, Christopher Ferraro, made the biggest insider sale in the last 12 months. That single transaction was for US$27m worth of shares at a price of US$36.00 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$20.95. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid US$1.6m for 64.10k shares. But they sold 1.32m shares for US$47m. All up, insiders sold more shares in Galaxy Digital than they bought, over the last year. The sellers received a price of around US$35.81, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$20.95). The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Galaxy Digital Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Galaxy Digital insiders own 1.0% of the company, worth about US$81m. 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 Does This Data Suggest About Galaxy Digital Insiders?

The insider sales have outweighed the insider buying, at Galaxy Digital, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Galaxy Digital has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

But note: Galaxy Digital 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 of direct interests only, but not derivative transactions or indirect interests.

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.