A number of The Greenbrier Companies, Inc. (NYSE:GBX) insiders sold their shares in the last year, which may have raised concerns among investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Greenbrier Companies

The Last 12 Months Of Insider Transactions At Greenbrier Companies

In the last twelve months, the biggest single purchase by an insider was when Independent Director Patrick Ottensmeyer bought US$339k worth of shares at a price of US$33.86 per share. We do like to see buying, but this purchase was made at well below the current price of US$46.58. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Greenbrier Companies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Greenbrier Companies Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Greenbrier Companies. Independent Director Patrick Ottensmeyer spent US$339k on stock. But Senior VP Martin Baker sold shares worth US$244k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Greenbrier Companies insiders own 3.2% of the company, worth about US$46m. 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 Do The Greenbrier Companies Insider Transactions Indicate?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Greenbrier Companies insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Greenbrier Companies (1 can't be ignored!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.