Ameresco, Inc. (NYSE:AMRC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a US$167m addition to the company's market value. As a result, their original purchase of US$2.21m worth of stock is now worth US$2.85m.
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.
See our latest analysis for Ameresco
The Last 12 Months Of Insider Transactions At Ameresco
In the last twelve months, the biggest single purchase by an insider was when Founder George Sakellaris bought US$903k worth of shares at a price of US$22.66 per share. Even though the purchase was made at a significantly lower price than the recent price (US$31.72), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 90.00k shares for US$2.2m. But they sold 2.16k shares for US$108k. In the last twelve months there was more buying than selling by Ameresco insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Ameresco is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Ameresco Insiders Bought Stock Recently
It's good to see that Ameresco insiders have made notable investments in the company's shares. In total, insiders bought US$2.2m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Ameresco Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Ameresco insiders own about US$644m worth of shares (which is 39% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Ameresco Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ameresco. That's what I like to see! 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 that end, you should learn about the 4 warning signs we've spotted with Ameresco (including 2 which are concerning).
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 of direct interests only, but not derivative transactions or indirect interests.
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