Potential Sunnova Energy International Inc. (NYSE:NOVA) shareholders may wish to note that the Chairman, William Berger, recently bought US$110k worth of stock, paying US$9.18 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.6%.
Sunnova Energy International Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Anne Andrew bought US$149k worth of shares at a price of US$9.91 per share. That means that even when the share price was higher than US$7.43 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Sunnova Energy International insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Sunnova Energy International Boast High Insider Ownership?
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. We usually like to see fairly high levels of insider ownership. Based on our data, Sunnova Energy International insiders have about 0.5% of the stock, worth approximately US$3.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Sunnova Energy International Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Sunnova Energy International insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sunnova Energy International. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Sunnova Energy International.
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.
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