Yahoo Finance Bullish CenterPoint Energy Insiders Loaded Up On US$1.41m Of Stock
Multiple insiders secured a larger position in CenterPoint Energy, Inc. (NYSE:CNP) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for CenterPoint Energy
The Last 12 Months Of Insider Transactions At CenterPoint Energy
Over the last year, we can see that the biggest insider purchase was by insider David Lesar for US$1.0m worth of shares, at about US$27.12 per share. That implies that an insider found the current price of US$28.73 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 52.00k shares for US$1.4m. But insiders sold 7.77k shares worth US$237k. In total, CenterPoint Energy insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CenterPoint Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. CenterPoint Energy insiders own about US$68m worth of shares. That equates to 0.4% 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 Does This Data Suggest About CenterPoint Energy Insiders?
It doesn't really mean much that no insider has traded CenterPoint Energy shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in CenterPoint Energy and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CenterPoint Energy. For instance, we've identified 2 warning signs for CenterPoint Energy (1 can't be ignored) you should be aware of.
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.
