Those following along with CenterPoint Energy, Inc. (NYSE:CNP) will no doubt be intrigued by the recent purchase of shares by David Lesar, CEO & Director of the company, who spent a stonking US$1.0m on stock at an average price of US$27.12.    While that only increased their holding size by 5.1%, it is still a big swing by our standards.    

See our latest analysis for CenterPoint Energy

CenterPoint Energy Insider Transactions Over The Last Year

In fact, the recent purchase by David Lesar was the biggest purchase of CenterPoint Energy shares made by an insider individual in the last twelve months, according to our records.     That means that an insider was happy to buy shares at around the current price of US$27.43.  Of course they may have changed their mind. But this suggests they are optimistic.  If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value.   In this case we're pleased to report that the insider purchases were made at close to current prices.    

Happily, we note that in the last year insiders paid US$1.3m for 47.00k shares.  On the other hand they divested 7.77k shares, for US$237k.     Overall, CenterPoint Energy insiders were net buyers during the last year.    The chart below shows insider transactions (by companies and individuals) over the last year.  If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:CNP Insider Trading Volume November 16th 2023

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.

Does CenterPoint Energy Boast High 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.   CenterPoint Energy insiders own about US$45m worth of shares. That equates to 0.3% 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.  

What Might The Insider Transactions At CenterPoint Energy Tell Us?

The recent insider purchases are heartening.    And an analysis of the transactions over the last year also gives us confidence.   Insiders likely see value in CenterPoint Energy shares, given these transactions (along with notable insider ownership of the company).      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 help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in CenterPoint Energy.  

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.