Yahoo Finance Innergex Renewable Energy Inc. (TSE:INE) Insiders Increased Their Holdings
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 shareholders might well want to know whether insiders have been buying or selling shares in Innergex Renewable Energy Inc. (TSE:INE).
Do Insider Transactions Matter?
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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Innergex Renewable Energy
Innergex Renewable Energy Insider Transactions Over The Last Year
There wasn't any very large single transaction over the last year, but we can still observe some trading.
Innergex Renewable Energy insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$20.61. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price (CA$21.35). The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Innergex Renewable 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 Innergex Renewable Energy Have Bought Stock Recently
Over the last quarter, Innergex Renewable Energy insiders have spent a meaningful amount on shares. Overall, five insiders shelled out CA$166k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Innergex Renewable Energy Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Innergex Renewable Energy insiders own 4.1% of the company, currently worth about CA$162m 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 Does This Data Suggest About Innergex Renewable Energy Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Innergex Renewable Energy. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Innergex Renewable Energy has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
But note: Innergex Renewable Energy 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.
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