Yahoo Finance Bullish insiders bet US$602k on New Fortress Energy Inc. (NASDAQ:NFE)
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of New Fortress Energy Inc. (NASDAQ:NFE), that sends out a positive message to the company's shareholders.
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 New Fortress Energy
New Fortress Energy Insider Transactions Over The Last Year
The Independent Director, Matthew Wilkinson, made the biggest insider sale in the last 12 months. That single transaction was for US$454k worth of shares at a price of US$42.28 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$30.23). So it may not shed much light on insider confidence at current levels. Matthew Wilkinson was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 14.75k shares worth US$602k. But insiders sold 10.80k shares worth US$454k. In total, New Fortress Energy insiders bought more than they sold over the last year. The average buy price was around US$40.83. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. New Fortress Energy insiders own 49% of the company, currently worth about US$3.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At New Fortress Energy Tell Us?
It doesn't really mean much that no insider has traded New Fortress Energy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like New Fortress Energy insiders think the business has merit. 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 3 warning signs we've spotted with New Fortress Energy (including 1 which can't be ignored).
Of course New Fortress Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.
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