U.S. markets closed
  • S&P 500

    3,821.35
    -20.59 (-0.54%)
     
  • Dow 30

    31,802.44
    +306.14 (+0.97%)
     
  • Nasdaq

    12,609.16
    -310.99 (-2.41%)
     
  • Russell 2000

    2,202.98
    +10.77 (+0.49%)
     
  • Crude Oil

    64.92
    -0.13 (-0.20%)
     
  • Gold

    1,681.60
    +3.60 (+0.21%)
     
  • Silver

    25.24
    -0.03 (-0.11%)
     
  • EUR/USD

    1.1855
    -0.0069 (-0.58%)
     
  • 10-Yr Bond

    1.5960
    +0.0420 (+2.70%)
     
  • GBP/USD

    1.3827
    -0.0001 (-0.01%)
     
  • USD/JPY

    108.9100
    +0.5280 (+0.49%)
     
  • BTC-USD

    52,059.87
    +1,411.08 (+2.79%)
     
  • CMC Crypto 200

    1,045.17
    +20.96 (+2.05%)
     
  • FTSE 100

    6,719.13
    +88.61 (+1.34%)
     
  • Nikkei 225

    28,743.25
    -121.07 (-0.42%)
     

Are Insiders Buying Clearway Energy, Inc. (NYSE:CWEN.A) Stock?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Clearway Energy, Inc. (NYSE:CWEN.A), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

Check out our latest analysis for Clearway Energy

The Last 12 Months Of Insider Transactions At Clearway Energy

President Christopher Sotos made the biggest insider purchase in the last 12 months. That single transaction was for US$94k worth of shares at a price of US$14.49 each. Even though the purchase was made at a significantly lower price than the recent price (US$20.69), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Clearway Energy insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:CWEN.A Recent Insider Trading, February 3rd 2020
NYSE:CWEN.A Recent Insider Trading, February 3rd 2020

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).

Does Clearway Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Clearway Energy insiders own 0.1% of the company, worth about US$4.6m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Clearway Energy Insiders?

It doesn't really mean much that no insider has traded Clearway Energy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Clearway Energy insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Clearway Energy.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.