Favourable Signals For Algonquin Power & Utilities: Numerous Insiders Acquired Stock
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 Algonquin Power & Utilities Corp. (TSE:AQN), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Algonquin Power & Utilities
The Last 12 Months Of Insider Transactions At Algonquin Power & Utilities
Over the last year, we can see that the biggest insider purchase was by insider Robert Schriesheim for CA$444k worth of shares, at about CA$8.43 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$8.18). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Algonquin Power & Utilities insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Based on our data, Algonquin Power & Utilities insiders have about 0.07% of the stock, worth approximately CA$4.3m. We consider this fairly low insider ownership.
So What Do The Algonquin Power & Utilities Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Algonquin Power & Utilities shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Algonquin Power & Utilities insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Algonquin Power & Utilities. When we did our research, we found 3 warning signs for Algonquin Power & Utilities (2 are significant!) that we believe deserve your full attention.
But note: Algonquin Power & Utilities 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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com