Yahoo Finance A number of insiders bought Consolidated Edison, Inc. (NYSE:ED) stock last year, which is great news for shareholders
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 Consolidated Edison, Inc. (NYSE:ED), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Consolidated Edison
Consolidated Edison Insider Transactions Over The Last Year
The VP & Treasurer, Yukari Saegusa, made the biggest insider sale in the last 12 months. That single transaction was for US$117k worth of shares at a price of US$80.46 each. That means that an insider was selling shares at slightly below the current price (US$85.32). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 57% of Yukari Saegusa's holding.
Over the last year, we can see that insiders have bought 3.54k shares worth US$256k. On the other hand they divested 1.45k shares, for US$117k. In total, Consolidated Edison insiders bought more than they sold over the last year. The average buy price was around US$72.46. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Consolidated Edison Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Consolidated Edison recently. In total, VP & Treasurer Yukari Saegusa sold US$117k worth of shares in that time. On the other hand we note insiders bought US$25k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Consolidated Edison insiders own 0.08% of the company, worth about US$25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Consolidated Edison Tell Us?
The insider sales have outweighed the insider buying, at Consolidated Edison, in the last three months. But we take heart from prior transactions. And insiders do own shares. So the recent selling doesn't worry us too much. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Consolidated Edison you should be aware of, and 1 of these doesn't sit too well with us.
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, 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.
