Don't Ignore The Insider Selling In Westinghouse Air Brake Technologies

Some Westinghouse Air Brake Technologies Corporation (NYSE:WAB) shareholders may be a little concerned to see that the CEO, President & Director, Rafael Santana, recently sold a substantial US$5.7m worth of stock at a price of US$141 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

See our latest analysis for Westinghouse Air Brake Technologies

The Last 12 Months Of Insider Transactions At Westinghouse Air Brake Technologies

In fact, the recent sale by Rafael Santana was the biggest sale of Westinghouse Air Brake Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$140. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Westinghouse Air Brake Technologies insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Westinghouse Air Brake Technologies Boast High 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. It's great to see that Westinghouse Air Brake Technologies insiders own 0.7% of the company, worth about US$173m. 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 Does This Data Suggest About Westinghouse Air Brake Technologies Insiders?

Insiders sold Westinghouse Air Brake Technologies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Westinghouse Air Brake Technologies is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Westinghouse Air Brake Technologies.

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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.