Insider Stock Buying Reaches US$2.57m On NextEra Energy
In the last year, multiple insiders have substantially increased their holdings of NextEra Energy, Inc. (NYSE:NEE) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for NextEra Energy
The Last 12 Months Of Insider Transactions At NextEra Energy
The Independent Director Kirk Hachigian made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$55.84 each. So it's clear an insider wanted to buy, at around the current price, which is US$59.54. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the NextEra Energy insiders decided to buy shares at close to current prices.
In the last twelve months NextEra Energy insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
NextEra Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At NextEra Energy Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at NextEra Energy. Independent Director Kirk Hachigian spent US$1.1m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. NextEra Energy insiders own about US$204m worth of shares (which is 0.2% of the company). 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 Does This Data Suggest About NextEra Energy Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest NextEra Energy insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for NextEra Energy (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.
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.
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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.
