Yahoo Finance Insider Stock Buying Reaches US$2.57m On NextEra Energy
Over the last year, a good number of insiders have significantly increased their holdings in NextEra Energy, Inc. (NYSE:NEE). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for NextEra Energy
The Last 12 Months Of Insider Transactions At NextEra Energy
Over the last year, we can see that the biggest insider purchase was by Independent Director Kirk Hachigian for US$1.1m worth of shares, at about US$55.84 per share. So it's clear an insider wanted to buy, at around the current price, which is US$61.70. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for NextEra Energy share holders is that insiders were buying at near the current price.
While NextEra Energy insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!
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.
NextEra Energy Insiders Bought Stock Recently
Over the last quarter, NextEra Energy insiders have spent a meaningful amount on shares. We can see that Independent Director Kirk Hachigian paid US$1.1m for shares in the company. No-one sold. That shows some optimism about the company's future.
Insider Ownership Of NextEra Energy
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. NextEra Energy insiders own about US$215m worth of shares (which is 0.2% of the company). 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 NextEra Energy Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about NextEra Energy. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that NextEra Energy is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
