Have Green Brick Partners Insiders Been Selling Stock?
Green Brick Partners, Inc. (NYSE:GRBK) insiders, particularly President & COO Jed Dolson, recently sold shares worth approximately US$2.4 million, reducing his holdings by 12%. This sale is the largest insider transaction in the past year, raising concerns among shareholders about the company's valuation. Despite the sale, insiders have not purchased shares in the last year, although they own 8.3% of the company. While Green Brick is profitable and growing, the lack of insider buying and recent sales may indicate caution for potential investors.
We wouldn't blame Green Brick Partners, Inc. (NYSE:GRBK) shareholders if they were a little worried about the fact that Jed Dolson, the President & COO recently netted about US$2.4m selling shares at an average price of US$67.62. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.
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The Last 12 Months Of Insider Transactions At Green Brick Partners
In fact, the recent sale by Jed Dolson was the biggest sale of Green Brick Partners shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$69.23, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 12% of Jed Dolson's holding.
Green Brick Partners insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Green Brick Partners
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Green Brick Partners insiders own 8.3% of the company, currently worth about US$254m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Green Brick Partners Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Green Brick Partners makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For instance, we've identified 2 warning signs for Green Brick Partners (1 doesn't sit too well with us) you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
