Wanda Felton Executes Sell Order: Offloads $195K In Greenbrier Companies Stock

Wanda Felton, Board Member at Greenbrier Companies GBX, executed a substantial insider sell on February 7, according to an SEC filing.

What Happened: Felton's decision to sell 4,185 shares of Greenbrier Companies was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $195,213.

Monitoring the market, Greenbrier Companies's shares up by 0.23% at $47.2 during Thursday's morning.

About Greenbrier Companies

Greenbrier Companies Inc designs, manufactures, and markets railroad freight car equipment in North America and Europe, marine barges in North America and provides wheel services, railcar refurbishment, and parts, leasing and other services to the railroad. Its segments include Manufacturing, Maintenance Services and Leasing & Management Services. The company generates a majority of its revenue from the manufacturing segment. Geographically, it derives a majority of revenue from the United States.

Greenbrier Companies: Financial Performance Dissected

Revenue Growth: Greenbrier Companies's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2023, the company achieved a revenue growth rate of approximately 5.52%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 15.0%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Greenbrier Companies's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.0.

Debt Management: With a high debt-to-equity ratio of 1.44, Greenbrier Companies faces challenges in effectively managing its debt levels, indicating potential financial strain.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Greenbrier Companies's P/E ratio of 14.01 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.4, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 8.6 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Understanding the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Greenbrier Companies's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.