Goldman Sachs President John Waldron just cashed in $13.6 million worth of company stock, selling 18,244 shares over a couple of days in late August.
The shares went for between $748 and $751 each, according to the regulatory filing that came out Friday.
This is pretty notable timing since Waldron is widely seen as the heir apparent to CEO David Solomon.
It could just be routine portfolio management or estate planning, but it also raises questions about his confidence in the company’s near-term prospects.
The sale happened over August 27-28, so it was planned and executed pretty quickly. At Goldman’s current stock price levels, $13.6 million represents a decent chunk of shares for even a senior executive to unload at once.
The filing breaks down exactly how Waldron did this – he spread the sale across six different trades to move all 18,244 shares. The average price worked out to about $749 per share, which got him to that $13.6 million total.
Strategic shuffle at Goldman
Waldron’s been at Goldman for over two decades now, starting there in 2000 and working his way up to President and COO in 2018.
So this isn’t some outsider making a quick move; he knows the company inside and out.
What’s important to note is that even after this big sale, Waldron still owns around 106,268 shares, which keeps him as one of Goldman’s biggest individual shareholders.
The sale represents maybe 6% of his total holdings, which puts it more in the category of portfolio management than any kind of panic move.
What makes this sale even more interesting is that Waldron and CEO Solomon both got massive share retention bonuses worth $80 million combined earlier this year.
That was Goldman’s way of keeping them locked in and aligned with shareholders, so selling stock just months later sends a bit of a mixed message.
Waldron’s leadership spans oversight of Goldman Sachs’ key divisions like investment banking, global markets, and asset and wealth management, and he is currently a member of Goldman’s board of directors.
Waldron’s stock sale sparks investor buzz
Goldman’s stock has been on a tear this year, hitting all-time highs thanks to strong revenue and profits from investment banking and trading.
So from a timing perspective, Waldron picked a pretty good moment to cash in some chips. His sale can be more to do with basic financial planning than any red flags about Goldman’s future.
Everyone’s keeping an eye on Waldron since he’s basically the consensus pick to eventually take over from Solomon as CEO.
When someone in that position makes any kind of move with their stock holdings, investors tend to read more into it than they probably should.
Sure, $13.6 million sounds like a lot of money, but when you look at his total stake in the company, it’s really just a small slice.
He still owns around 106,268 shares, so this sale doesn’t suggest he’s lost faith in Goldman’s game plan or where the company is headed.
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