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.
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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.
