There aren’t many S&P/ASX 200 Index (ASX: XJO) stocks that have done as well as Goodman Group (ASX: GMG) in the last year, with a rise of around 70%. Greg Goodman has chosen this point in time to transact a large sale of Goodman shares.
Greg Goodman is the current CEO and co-founder of the property giant.
When a member of the leadership team decides to sell shares, it can be a worrying sign. Let’s examine the sale and then consider whether it’s actually concerning.
Goodman share sale
Greg Goodman has a beneficial interest in the JSH Family Trust, which is the entity that sold shares.
This family trust owned 1.95 million Goodman shares before the sale and sold 1 million Goodman shares on 15 May 2024, according to the ASX announcement.
The sale raised $33.336 million, suggesting the average price per share was approximately $33.34.
Is this a worrying sign for the ASX 200 stock?
The last time Greg Goodman sold shares was in mid-September 2023 when he sold around $20 million of shares. Since then, the Goodman share price has gone up around 50%, so the just-announced sale does not mean an impending decline is certain to occur.
The co-founder still has an enormous amount of wealth tied to the ASX 200 stock. Greg Goodman has an indirect holding of 37.9 million Goodman shares, which is worth around $1.3 billion – he still has a lot of skin in the game.
Plus, Greg Goodman owns 4.3 million performance rights. He is incentivised to help the business succeed.
The FY24 third-quarter update showed ongoing success for the business, with expectations for its operating earnings per security (EPS) growth upgraded to 13%.
Goodman Group’s total portfolio is now worth $80.5 billion, with a $12.9 billion development work in progress (WIP) pipeline. It completed $0.8 billion of developments in the latest quarter, with 96% of year-to-date completions committed (by tenants). Data centres under construction currently represent approximately 40% of WIP.
The rental performance remains commendable across Goodman’s partnerships, with an 98% occupancy rate and net property income like-for-like growth of 4.9%.
Goodman share price snapshot
Since the start of 2024, the ASX 200 stock has risen 36% (as seen on the chart below), compared to a rise of just 3% for the ASX 200.
The Goodman share price is up 0.5% today amid news of this sale.
The post Guess which ASX 200 co-founder just sold $33 million worth of company shares appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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