How Much Are WEC Energy Group, Inc. (NYSE:WEC) Insiders Taking Off The Table?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in WEC Energy Group, Inc. (NYSE:WEC).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 WEC Energy Group
WEC Energy Group Insider Transactions Over The Last Year
Presiding Director Barbara Bowles made the biggest insider sale in the last 12 months. That single transaction was for US$166k worth of shares at a price of US$66.45 each. That means that an insider was selling shares at below the current price (US$74.96). While sellers have a variety of reasons for selling, this isn’t particularly great to see. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. Please note, however, that this single sale was just 10.7% of Barbara Bowles’s stake.
In the last twelve months insiders netted US$390k for 6.10k shares sold. In total, WEC Energy Group insiders sold more than they bought over the last year. The average sell price was around US$63.87. It’s not particularly great to see insiders were selling shares around current prices. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by 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. WEC Energy Group insiders own 0.2% of the company, currently worth about US$51m 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 WEC Energy Group Insider Transactions Indicate?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. The insider transactions at WEC Energy Group are not very heartening. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in WEC Energy Group, you should check out this free report on analyst forecasts for the company.
Of course WEC Energy Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
