We recently published a list of Should You Buy the Dip and Follow Insiders into These 10 Stocks?. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against other stocks insiders were piling into recently.
After a turbulent week, stocks began recovering on Monday, with all three major indexes posting gains. The broader market index rose 0.64%, blue-chip stocks gained 0.85%, and the NASDAQ Composite, still in correction territory, closed 0.31% higher.
Early Tuesday, stocks began to decline again as investors focused on the Federal Reserve’s two-day policy meeting starting today. The key announcement for traders will come Wednesday when the Fed announces its interest rate decision, followed by a press conference with Fed Chair Jerome Powell. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Despite uncertainty from President Trump’s shifting tariff policies and geopolitical strategies, some analysts remain optimistic about AI’s future.
“We retain our view that there is more to go in stocks, and we keep our conviction in the long-term opportunities in stocks linked to both the artificial intelligence and power and resources transformational innovations,” UBS chief investment office said in a note Monday, according to CNBC.
Amid turbulence and uncertainty on Wall Street, looking at recent insider trades can provide valuable insights, as executives often have a deeper understanding of their companies. For example, when a CEO or CFO buys company stock, it may indicate strong confidence in the business’s future.
However, insider selling doesn’t always signal a lack of confidence. It could be due to personal financial needs or a desire to diversify investments. These sales are often made through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing.
While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
We used Insider Monkey’s insider trading stock screener to analyze recent trading activities in several popular stocks. For each stock, we noted the number of insiders who recently acquired shares and the company’s market capitalization.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Insiders Buying: 1
Market Capitalization: $171.35 billion
The Goldman Sachs Group, Inc. (NYSE:GS) is a top global investment bank that serves high-profile clients, including multinational corporations, institutional investors, and sovereign wealth funds. Its diversified business model spans investment banking, consumer banking, trading & markets, and asset management, ensuring stability by not relying on a single sector. The stock is also considered one of the 10 most profitable value stocks to buy now.
Goldman Sachs (NYSE:GS) has paid consistent dividends since 1999. In fiscal 2024, the company returned $3.8 billion to shareholders through dividends. On January 15, it announced a quarterly dividend of $3.00 per share, matching its previous payout. For the fourth quarter of 2024, Goldman Sachs reported net revenues of $13.87 billion, up from $11.32 billion in the same period in 2023.
On January 17, one insider purchased a total of $1.49 million worth of Goldman Sachs shares at a price of $619.02 per share. Year-to-date, the stock dropped 3.72%, and currently trades at $551.34 per share. However, over the past 12 months, Goldman Sachs returned 43.44% to its investors.
Goldman Sachs (NYSE:GS) recently posted results of its new national survey 10,000 Small Businesses Voices revealing optimism among the small business owners about the coming year. The owners hope Congress will prioritize tax reform, address inflation, and increase access to capital to help them grow and create new jobs.
On March 14 the company issued an annual letter to its investors saying the company managed to achieve or exceed all the performance targets that it had set for itself. “Whatever the future holds, I am very confident about the trajectory of Goldman Sachs. We are ready to continue serving our clients and drive stronger returns for shareholders, as we execute with a relentless emphasis on client service, partnership, integrity and excellence,” wrote David Solomon, chair and CEO at Goldman Sachs.
Fifteen analysts have given Goldman Sachs stock an average “Moderate Buy” rating, with a price target of $665.54. The average price target suggests a 20.71% upside from the current price, writes TipRanks.
Overall, GS ranks 5th on our list of stocks insiders were piling into recently. While we acknowledge the potential of GS, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
