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The Senior VP & CFO of Consolidated Edison, Inc. (NYSE:ED), Robert Hoglund, Just Bought 5.0% More Shares

Investors who take an interest in Consolidated Edison, Inc. (NYSE:ED) should definitely note that the Senior VP & CFO, Robert Hoglund, recently paid US$71.65 per share to buy US$143k worth of the stock. Although the purchase only increased their holding by 5.0%, it is still a solid purchase in our view.

View our latest analysis for Consolidated Edison

Consolidated Edison Insider Transactions Over The Last Year

Notably, that recent purchase by Robert Hoglund is the biggest insider purchase of Consolidated Edison shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$71.28). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Consolidated Edison insiders bought shares during the last year, they didn't sell. The average buy price was around US$81.38. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:ED Insider Trading Volume June 27th 2020
NYSE:ED Insider Trading Volume June 27th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Consolidated Edison

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Consolidated Edison insiders own about US$28m worth of shares. That equates to 0.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Consolidated Edison Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Consolidated Edison insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Consolidated Edison (including 1 which is a bit unpleasant).

But note: Consolidated Edison 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, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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