Summary:
⚈ $2 million purchase signals strong confidence amid market uncertainty.
⚈ GS stock rallied 7.8% in a week, narrowing YTD losses to 4.6%.
Corporate insider sales are not a relatively common feature, thanks to many high-ranking employees receiving compensation primarily in the form of equity. However, direct purchases tend to be rarer and, arguably, more noteworthy.
John Hess, a Goldman Sachs (NYSE: GS) Director and CEO of Hess Corp (NYSE: HES), made a historic move on April 15 as he became the first corporate insider to execute an outright buy of GS stock in 17 years.
In the trade reported on April 17, Hess purchased 3,904 GS shares at an average price of $511.68 for a total of $2 million. Thus, the corporate insider increased his stake in the banking giant by 1,019.32% as his holdings rose from 383 to 4,287.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Why the Hess Goldman Sachs purchase is noteworthy
Given the stock market situation in 2025, the insider trade, picked up by Finbold’s insider trading radar, can be seen as an important vote of confidence in Goldman Sachs itself, as well as the wider banking sector.
Indeed, recent months have been marked by extensive selling and a shift toward safer assets, such as gold. This is largely due to President Donald Trump’s trade war, particularly given the unpredictable rollout of tariffs, which has triggered significant anxiety and led many to estimate that the U.S. might already be in a recession.
The discomfort of the 2025 market is best exemplified by the year-to-date (YTD) declines of major indices, such as the S&P 500 and the Nasdaq 100, with the former down 6.54% and the latter down 8.40%.
Under the circumstances, a corporate insider’s decision to make a direct purchase serves as a significant vote of confidence. The purchase is made all the more noteworthy by the fact that the April 15 trade is Hess’ first outright buy in the last 5 years and constitutes the third transaction involving stock of firms other than the Hess Group.
The move also stands in sharp contrast to the other investment activity of major bank insiders. Notably, JPMorgan’s (NYSE: JPM) Jamie Dimon has been noted for his extensive selling of JPM shares in recent weeks.
Lastly, it is worth remembering that one bird does not make a flock, and that, despite the activity having a bullish tint, it should not serve as the sole foundation for an investment strategy in the second quarter (Q2) of 2025.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Goldman Sachs stock 2025 performance
Elsewhere, Goldman Sachs shares have recently entered a strong rally and are rapidly diminishing their YTD losses. With its press time price of $546.28, GS stock is 4.60% down since January 2, the first session of the year.
In stark contrast, Goldman Sachs shares are up 7.79% over the last week of trading and closed the most recent day, April 24, up 3.03%.
Featured image via Shutterstock
