John Farris Is The Independent Director of Green Brick Partners, Inc. (NASDAQ:GRBK) And They Just Spent US$95k On Shares
Even if it's not a huge purchase, we think it was good to see that John Farris, the Independent Director of Green Brick Partners, Inc. (NASDAQ:GRBK) recently shelled out US$95k to buy stock, at US$7.69 per share. That purchase might not be huge but it did increase their holding by 11%.
Check out our latest analysis for Green Brick Partners
The Last 12 Months Of Insider Transactions At Green Brick Partners
In fact, the recent purchase by Independent Director John Farris was not their only acquisition of Green Brick Partners shares this year. Earlier in the year, they paid US$8.70 per share in a US$174k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.22). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 47.40k shares worth US$398k. On the other hand they divested 9300 shares, for US$101k. Overall, Green Brick Partners insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Green Brick Partners is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. We usually like to see fairly high levels of insider ownership. Insiders own 5.1% of Green Brick Partners shares, worth about US$16m. 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 Green Brick Partners Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Green Brick Partners insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Green Brick Partners has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
But note: Green Brick Partners 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
