Westinghouse Air Brake Technologies Insiders Sell US$19m Of Stock, Possibly Signalling Caution

In the last year, many Westinghouse Air Brake Technologies Corporation (NYSE:WAB) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Westinghouse Air Brake Technologies

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

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Rafael Santana, sold US$5.7m worth of shares at a price of US$141 per share. That means that even when the share price was below the current price of US$207, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 25% of Rafael Santana's holding.

Insiders in Westinghouse Air Brake Technologies didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Westinghouse Air Brake Technologies Have Sold Stock Recently

The last quarter saw substantial insider selling of Westinghouse Air Brake Technologies shares. Specifically, insiders ditched US$2.1m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Westinghouse Air Brake Technologies insiders own 0.7% of the company, worth about US$236m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Westinghouse Air Brake Technologies Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Westinghouse Air Brake Technologies is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Westinghouse Air Brake Technologies. At Simply Wall St, we found 1 warning sign for Westinghouse Air Brake Technologies that deserve your attention before buying any shares.

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.