Trade Alert: CFO, Treasurer & Secretary Of Green Brick Partners Richard Costello Has Sold Stock

Some Green Brick Partners, Inc. (NYSE:GRBK) shareholders may be a little concerned to see that the CFO, Treasurer & Secretary, Richard Costello, recently sold a substantial US$1.1m worth of stock at a price of US$72.75 per share. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Green Brick Partners

The Last 12 Months Of Insider Transactions At Green Brick Partners

In fact, the recent sale by CFO, Treasurer & Secretary Richard Costello was not their only sale of Green Brick Partners shares this year. They previously made an even bigger sale of -US$2.3m worth of shares at a price of US$56.77 per share. That means that even when the share price was below the current price of US$74.96, 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 43% of Richard Costello's holding.

In total, Green Brick Partners insiders sold more than they bought over 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!

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).

Does Green Brick Partners Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Green Brick Partners insiders own 8.1% of the company, currently worth about US$261m 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 Green Brick Partners Tell Us?

An insider sold Green Brick Partners shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Green Brick Partners 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Green Brick Partners (of which 1 is a bit unpleasant!) you should know about.

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.