Yahoo Finance Multiple insiders bought CES Energy Solutions Corp. (TSE:CEU) stock earlier this year, a positive sign for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of CES Energy Solutions Corp. (TSE:CEU), it sends a favourable 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, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for CES Energy Solutions
The Last 12 Months Of Insider Transactions At CES Energy Solutions
The President of US Production Chemicals, Vernon Disney, made the biggest insider sale in the last 12 months. That single transaction was for CA$188k worth of shares at a price of CA$2.39 each. That means that even when the share price was below the current price of CA$2.71, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.2% of Vernon Disney's holding. The only individual insider seller over the last year was Vernon Disney.
In the last twelve months insiders purchased 126.52k shares for CA$316k. On the other hand they divested 78.75k shares, for CA$188k. Overall, CES Energy Solutions insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Of CES Energy Solutions
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.7% of CES Energy Solutions shares, worth about CA$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At CES Energy Solutions Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think CES Energy Solutions insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CES Energy Solutions. Our analysis shows 2 warning signs for CES Energy Solutions (1 is concerning!) and we strongly recommend you look at these before investing.
Of course CES Energy Solutions 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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