Stock Analysis

Have Insiders Sold Greif, Inc. (NYSE:GEF) Shares Recently?

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Some Greif, Inc. (NYSE:GEF) shareholders may be a little concerned to see that the Executive VP & CFO, Lawrence Hilsheimer, recently sold a substantial US$885k worth of stock at a price of US$60.61 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Greif

Notably, that recent sale by Lawrence Hilsheimer is the biggest insider sale of Greif shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$58.16. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

All up, insiders sold more shares in Greif than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:GEF Insider Trading Volume March 19th 2023

I will like Greif better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Greif

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. Greif insiders own about US$1.1b worth of shares (which is 37% of the company). 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 Do The Greif Insider Transactions Indicate?

The stark truth for Greif is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Greif 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 Greif. Case in point: We've spotted 3 warning signs for Greif you should be aware of, and 1 of these doesn't sit too well with us.

But note: Greif may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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