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Trade Alert: The Chairman & CEO Of The Greenbrier Companies, Inc. (NYSE:GBX), William Furman, Has Just Spent US$2.2m Buying 9.8% More Shares

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  • GBX

Those following along with The Greenbrier Companies, Inc. (NYSE:GBX) will no doubt be intrigued by the recent purchase of shares by William Furman, Chairman & CEO of the company, who spent a stonking US$2.2m on stock at an average price of US$43.85. While that only increased their holding size by 9.8%, it is still a big swing by our standards.

See our latest analysis for Greenbrier Companies

The Last 12 Months Of Insider Transactions At Greenbrier Companies

In fact, the recent purchase by William Furman was the biggest purchase of Greenbrier Companies shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$46.76. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Greenbrier Companies insider decided to buy shares at close to current prices. William Furman was the only individual insider to buy shares in the last twelve months.

William Furman purchased 200.00k shares over the year. The average price per share was US$30.12. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. It appears that Greenbrier Companies insiders own 3.4% of the company, worth about US$52m. 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?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Greenbrier Companies we think they are probably pretty confident of a bright future. 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 Greenbrier Companies has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: Greenbrier Companies 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.