Innergex Renewable Energy Insiders Added CA$795.3k Of Stock To Their Holdings
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Innergex Renewable Energy Inc. (TSE:INE), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Innergex Renewable Energy
Innergex Renewable Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Marc-Andre Aube bought CA$308k worth of shares at a price of CA$7.69 per share. That implies that an insider found the current price of CA$8.11 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Innergex Renewable Energy insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$8.55 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Innergex Renewable Energy Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Innergex Renewable Energy. Overall, five insiders shelled out CA$590k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Innergex Renewable Energy Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Innergex Renewable Energy insiders own 0.8% of the company, worth about CA$12m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Innergex Renewable Energy Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Innergex Renewable Energy we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Innergex Renewable Energy has 3 warning signs (and 1 which can't be ignored) we think you should know about.
But note: Innergex Renewable 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
