We wouldn't blame Green Plains Inc. (NASDAQ:GPRE) shareholders if they were a little worried about the fact that James Crowley, the Independent Director recently netted about US$510k selling shares at an average price of US$31.88. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Green Plains
In fact, the recent sale by James Crowley was the biggest sale of Green Plains shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$31.97, 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. 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. This single sale was just 32% of James Crowley's stake.
Happily, we note that in the last year insiders paid US$451k for 32.42k shares. But insiders sold 55.50k shares worth US$1.4m. Over the last year we saw more insider selling of Green Plains shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Green Plains
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. Insiders own 4.9% of Green Plains shares, worth about US$69m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Green Plains Tell Us?
Insiders sold Green Plains shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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 5 warning signs for Green Plains (of which 2 are significant!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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