Ormat Technologies, Inc. (NYSE:ORA) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
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 Ormat Technologies
The Last 12 Months Of Insider Transactions At Ormat Technologies
Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Stanley Stern, for US$133k worth of shares, at about US$84.42 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$67.00). So it is hard to draw any strong conclusion from it.
In the last year Ormat Technologies insiders didn't buy any company stock. 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!
I will like Ormat Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At Ormat Technologies Have Sold Stock Recently
We have seen a bit of insider selling at Ormat Technologies, over the last three months. Insiders divested only US$40k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
Does Ormat Technologies 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. From our data, it seems that Ormat Technologies insiders own 0.2% of the company, worth about US$8.6m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Ormat Technologies Tell Us?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. We're a little cautious about the insider selling at Ormat Technologies. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Ormat Technologies you should be aware of, and 1 of these makes us a bit uncomfortable.
Of course Ormat Technologies 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 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.