Some Green Brick Partners, Inc. (NYSE:GRBK) shareholders may be a little concerned because CFO, Treasurer, and Secretary Richard Costello recently sold $1.1 million worth of stock at a price of $72.75 per share. This sale reduced their total holdings by 29%, which is not insignificant, but far from the worst we’ve seen.
Check out our latest analysis for Green Brick Partners
The last 12 months of insider transactions at Green Brick Partners
In fact, the recent sale by CFO, Treasurer and Secretary Richard Costello wasn’t their only sale of Green Brick Partners stock this year. Before that, they made an even larger sale of -$2.3 million worth of shares at a price of $56.77 per share. That means an insider wanted to cash in on some shares even when the share price was below the current price of $74.96. If an insider is selling below the current price, it suggests they thought that lower price was fair. That makes us wonder what they think of the (higher) recent valuation. While insider sales are sometimes discouraging, they are only a weak signal. It’s worth noting that this sale only involved 43% of Richard Costello’s shares.
Overall, Green Brick Partners insiders have sold more than they have bought in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the chart below, you can see the exact details of each insider transaction!
If you like buying stocks that insiders are buying and not selling, you might like this free List of companies. (Note: most of them fly under the radar).
Does Green Brick Partners have a high level of insider ownership?
For a common shareholder, it’s worth checking how many shares are held by company insiders. I think it’s a good sign when insiders own a significant number of shares in the company. Green Brick Partners insiders own 8.1% of the company, which is currently worth about $261 million based on the current share price. This kind of significant ownership by insiders generally increases the chance that the company is being run in the interests of all shareholders.
What could the insider transactions at Green Brick Partners tell us?
An insider recently sold shares of Green Brick Partners, but did not buy any. And our longer-term analysis of insider transactions has not convinced us either. However, since Green Brick Partners is profitable and growing, we are not too worried. The company boasts a high insider ownership, but given the history of share sales, we are a little hesitant. So these insider transactions can help us build a thesis on the stock, but it is also worth knowing the risks this company faces. Every company has risks, and we have spotted a few. 2 warning signs for Green Brick Partners (1 of them a bit unpleasant!) that you should know.
Naturally Green Brick Partners may not be the best stock to buy. You may want to see this free Collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
