Global Payments: Insider Selling Is A Negative Indicator

Global Payments (GPN) has been announcing a few deals here and there. The stock has been gaining some ground, but the insiders are selling consistently into the rise. Carl Williams President Worldwide Payments Processing, James Kelly the COO, Suellyn Tornay EVP and Head Lawyer, and Joseph Hyde CFO are all exercising and selling. These are all senior people and should have a pretty good insiders view on what’s happening. The institutions have been exiting the stock, lightening their load by some 20%. Carl Icahn reported that he has a new position.

In July they gave guidance that revenues would grow by 10-15% and earnings would grow 5-10%. Essentially, this means that they are growing increasingly inefficient. This explains why Carl Icahn is taking up a position and why the senior managers are selling into a rising stock price.

Earnings conference call is set for Sep 27 at 5:00pm ET after the earnings have been released for one measly hour. The investor needs to hear something of substance because the two cents a share dividend is a joke. Perhaps the insider selling is the best guidance to date.