This Insider Has Just Sold Shares In Green Brick Partners

Simply Wall St ·  Dec 17, 2023 07:05

We wouldn't blame Green Brick Partners, Inc. (NYSE:GRBK) shareholders if they were a little worried about the fact that Jed Dolson, the COO & Executive VP recently netted about US$509k selling shares at an average price of US$50.93. However, that sale only accounted for 3.9% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Green Brick Partners

The Last 12 Months Of Insider Transactions At Green Brick Partners

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Elizabeth Blake, sold US$1.3m worth of shares at a price of US$51.32 per share. That means that even when the share price was below the current price of US$52.68, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of Elizabeth Blake's holding.

Green Brick Partners insiders didn't buy any shares over the last year. 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!

NYSE:GRBK Insider Trading Volume December 17th 2023

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Insider Ownership Of Green Brick Partners

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Green Brick Partners insiders own 7.2% of the company, currently worth about US$172m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Green Brick Partners Insiders?

An insider sold Green Brick Partners shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Green Brick Partners. In terms of investment risks, we've identified 1 warning sign with Green Brick Partners and understanding this should be part of your investment process.

Of course Green Brick Partners may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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