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As Clearway Energy, Inc. (NYSE:CWEN.A) gains 5.2%, insiders who bought last year may be wishing they had bet higher

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Last week, Clearway Energy, Inc. (NYSE:CWEN.A) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 5.2% last week, resulting in a US$191m increase in the company's market worth. As a result, the stock they originally bought for US$102k is now worth US$132k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Clearway Energy

Clearway Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Christopher Sotos for US$53k worth of shares, at about US$26.26 per share. Even though the purchase was made at a significantly lower price than the recent price (US$33.10), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Christopher Sotos bought 4.00k shares over the last 12 months at an average price of US$25.41. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. Clearway Energy insiders own about US$12m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Clearway Energy Tell Us?

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 Clearway Energy 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. Case in point: We've spotted 3 warning signs for Clearway Energy you should be aware of, and 2 of them can't be ignored.

But note: Clearway Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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