Anyone interested in The Greenbrier Companies, Inc. (NYSE:GBX) should probably be aware that the Senior VP & Chief Human Resources Officer, Laurie Dornan, recently divested US$302k worth of shares in the company, at an average price of US$50.92 each. The eyebrow raising move amounted to a reduction of 20% in their holding.

Greenbrier Companies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Lorie Tekorius, for US$501k worth of shares, at about US$52.01 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$44.59. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Greenbrier Companies shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Greenbrier Companies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Greenbrier Companies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Greenbrier Companies insiders own about US$44m worth of shares. That equates to 3.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Greenbrier Companies Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Greenbrier Companies makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Greenbrier Companies (including 1 which is a bit concerning).

Of course Greenbrier Companies may not be the best stock to buy. So you may wish 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 regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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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.