The insider-trading story tells an interesting tale. No insider purchases in the past six months. No one was loading up as the train was leaving the station. Insider sales were a minuscule 215,000 shares. No one was really getting off the train either. Institutional holdings in the past quarter were trimmed by approximately 5.4 million shares or less than 2% of institutional holdings. This amounts to a pittance.
Goldman Sachs has been like a really great party, no one wants to go home. We all think we want another round of drinks. But the stock is trading close to its 52-week high. The results are really good but how do they continue at this torrid pace? The short interest spiked from just under 2.25% to just under 3.00% in mid Oct, before settling down to just over 2.25% in mid Nov. Momentum might be weakening.
But do you really bet against Goldman Sachs? Of course you do! If investors were slightly disappointed with this round of earnings, they will soon become jaded and will not be pleased with another very good quarter or two. Who, then, is left to buy the stock?
However it will be difficult to replace - truly is a pity.
GS 1-yr chart: