Executive VP & Chief Technology Officer Of Westinghouse Air Brake Technologies Sold 27% Of Their Shares
Some Westinghouse Air Brake Technologies Corporation (NYSE:WAB) shareholders may be a little concerned to see that the Executive VP & Chief Technology Officer, Eric Gebhardt, recently sold a substantial US$2.1m worth of stock at a price of US$299 per share. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Westinghouse Air Brake Technologies
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Rafael Santana, for US$16m worth of shares, at about US$270 per share. That means that even when the share price was below the current price of US$301, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 32% of Rafael Santana's holding.
In the last year Westinghouse Air Brake Technologies insiders didn't buy any company stock. 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!
See our latest analysis for Westinghouse Air Brake Technologies
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Insider Ownership Of Westinghouse Air Brake Technologies
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Westinghouse Air Brake Technologies insiders own 0.7% of the company, currently worth about US$367m 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. And there weren't any purchases to give us comfort, over the last year. On the plus side, Westinghouse Air Brake Technologies makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of 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. In terms of investment risks, we've identified 2 warning signs with Westinghouse Air Brake Technologies and understanding them should be part of your investment process.
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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.