This Insider Has Just Sold Shares In Westinghouse Air Brake Technologies

We wouldn't blame Westinghouse Air Brake Technologies Corporation (NYSE:WAB) shareholders if they were a little worried about the fact that David DeNinno, the Executive VP recently netted about US$1.0m selling shares at an average price of US$210. However, that sale only accounted for 8.3% of their holding, so arguably it doesn't say much about their conviction.

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Westinghouse Air Brake Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Rafael Santana, sold US$9.8m worth of shares at a price of US$180 per share. That means that an insider was selling shares at slightly below the current price (US$204). 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 28% of Rafael Santana's holding.

In the last year Westinghouse Air Brake Technologies insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Westinghouse Air Brake Technologies

I will like Westinghouse Air Brake Technologies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Westinghouse Air Brake Technologies 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. Westinghouse Air Brake Technologies insiders own 0.7% of the company, currently worth about US$240m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Westinghouse Air Brake Technologies Tell Us?

Insiders haven't bought Westinghouse Air Brake Technologies stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Westinghouse Air Brake Technologies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Westinghouse Air Brake Technologies you should be aware of.

Of course Westinghouse Air Brake Technologies 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.