Director Patrick Ottensmeyer Buys 10,000 Shares of Greenbrier Companies Inc
On October 30, 2023, Patrick Ottensmeyer, a director at Greenbrier Companies Inc (NYSE:GBX), purchased 10,000 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
Greenbrier Companies Inc is a leading supplier of transportation equipment and services to the railroad and related industries. The company's manufacturing segment includes double-stack intermodal railcars, tank cars, and marine vessels. Greenbrier also provides wheel services, parts, leasing, and other services to the railroad and related transportation industries. It also builds and refurbishes freight cars for railroads, leasing companies, and end users.
Insider buying refers to when a company's executives, directors, or other insiders purchase the company's stock. This is often seen as a positive sign as it shows that the insiders believe in the company's future and are willing to invest their own money in it. Conversely, insider selling is when insiders sell their shares, which could be seen as a lack of confidence in the company's future prospects.
Over the past year, the insider has purchased 10,000 shares in total and sold 0 shares in total. This indicates a strong confidence in the company's future performance.
The insider transaction history for Greenbrier Companies Inc shows that there have been 1 insider buys in total over the past year. Meanwhile, there have been 7 insider sells over the same timeframe. This could indicate a mixed sentiment among the company's insiders.
On the day of the insider's recent buy, shares of Greenbrier Companies Inc were trading for $33.86 apiece. This gives the stock a market cap of $1.097 billion.
The price-earnings ratio is 18.96, which is higher than the industry median of 12.35 and higher than the companys historical median price-earnings ratio. This could indicate that the stock is currently overvalued compared to its peers and its own historical performance.
However, with a price of $33.86 and a GuruFocus Value of $52.82, Greenbrier Companies Inc has a price-to-GF-Value ratio of 0.64. This means the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
A GuruFocus adjustment factor based on the companys past returns and growth.
Future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent purchase of 10,000 shares could be a positive sign for the future performance of Greenbrier Companies Inc. Despite the stock's high price-earnings ratio, its low price-to-GF-Value ratio suggests that it could be significantly undervalued. Investors should keep a close eye on the company's future performance and any further insider transactions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
