We'd be surprised if The Greenbrier Companies, Inc. (NYSE:GBX) shareholders haven't noticed that the Senior VP & President of Europe, William Glenn, recently sold US$193k worth of stock at US$48.15 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Greenbrier Companies

The Senior VP & Chief Operations Officer of The Americas, William Krueger, made the biggest insider sale in the last 12 months. That single transaction was for US$300k worth of shares at a price of US$50.00 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$50.06. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 9.2% of William Krueger's holding.

In total, Greenbrier Companies insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Greenbrier Companies Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Greenbrier Companies insiders own 2.6% of the company, worth about US$39m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Greenbrier Companies Insider Transactions Indicate?

An insider hasn't bought Greenbrier Companies stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Greenbrier Companies is showing 5 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Greenbrier Companies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.