Possible Bearish Signals With Westinghouse Air Brake Technologies Insiders Disposing Stock
Simply Wall St · 11/13 10:44

Over the past year, many Westinghouse Air Brake Technologies Corporation (NYSE:WAB) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Westinghouse Air Brake Technologies

The Last 12 Months Of Insider Transactions At Westinghouse Air Brake Technologies

The CEO, President & Director, Rafael Santana, made the biggest insider sale in the last 12 months. That single transaction was for US$8.2m worth of shares at a price of US$105 each. That means that even when the share price was below the current price of US$113, 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 52% of Rafael Santana's stake.

Insiders in Westinghouse Air Brake Technologies didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:WAB Insider Trading Volume November 13th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Westinghouse Air Brake Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Westinghouse Air Brake Technologies insiders own 0.6% of the company, worth about US$125m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Westinghouse Air Brake Technologies Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Westinghouse Air Brake Technologies insiders selling. Of course, the future is what matters most. So if you are interested in Westinghouse Air Brake Technologies, you should check out this free report on analyst forecasts for the company.

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 of direct interests only, but not derivative transactions or indirect interests.