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With stock up 4.5%, Insiders of Green Brick Partners, Inc. (NYSE:GRBK) must be wishing they had bought more last year


Green Brick Partners, Inc. (NYSE:GRBK) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 4.5%, resulting in a US$58m rise in the company’s market capitalisation. In other words, the original US$499k purchase is now worth US$723k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Green Brick Partners

Green Brick Partners Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Harry Brandler bought US$499k worth of shares at a price of US$19.97 per share. We do like to see buying, but this purchase was made at well below the current price of US$28.91. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

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:GRBK Insider Trading Volume January 25th 2023

Green Brick Partners is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. We usually like to see fairly high levels of insider ownership. It appears that Green Brick Partners insiders own 7.3% of the company, worth about US$97m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Green Brick Partners Insiders?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Green Brick Partners and their transactions don’t cause us concern. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. You’d be interested to know, that we found 1 warning sign for Green Brick Partners and we suggest you have a look.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.

What are the risks and opportunities for Green Brick Partners?

Green Brick Partners, Inc. operates as a homebuilding and land development company in the United States.

View Full Analysis

Rewards

  • Price-To-Earnings ratio (4.5x) is below the US market (14.9x)

  • Earnings grew by 90.7% over the past year

Risks

  • Earnings are forecast to decline by an average of 29.8% per year for the next 3 years

View all Risks and Rewards

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.



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