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Those following along with Bloom Energy Corporation (NYSE:BE) will no doubt be intrigued by the recent purchase of shares by Jeffrey Immelt, Lead Independent Director of the company, who spent a stonking US$753k on stock at an average price of US$19.82. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 35%.
Bloom Energy Insider Transactions Over The Last Year
Notably, that recent purchase by Lead Independent Director Jeffrey Immelt was not the only time they bought Bloom Energy shares this year. Earlier in the year, they paid US$14.86 per share in a US$1.0m purchase. We do like to see buying, but this purchase was made at well below the current price of US$22.29. 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.
Jeffrey Immelt bought 108.00k shares over the last 12 months at an average price of US$16.61. 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).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bloom Energy insiders own 6.1% of the company, currently worth about US$233m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Bloom Energy Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Bloom Energy insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. While conducting our analysis, we found that Bloom Energy has 4 warning signs and it would be unwise to ignore these.
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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