Sunnova Energy International Inc.'s (NYSE:NOVA) value has fallen 34% in the last week, but insiders who sold US$1.5m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$13.93 is still below the current share price.
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.
Sunnova Energy International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Revenue Officer, Michael Grasso, for US$268k worth of shares, at about US$14.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$7.44. So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 11.00k shares worth US$158k. But insiders sold 105.76k shares worth US$1.5m. All up, insiders sold more shares in Sunnova Energy International than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Sunnova Energy International insiders own about US$8.9m worth of shares (which is 1.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Sunnova Energy International Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Sunnova Energy International shares in the last quarter. The insider transactions at Sunnova Energy International are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. 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. Be aware that Sunnova Energy International is showing 4 warning signs in our investment analysis, and 2 of those can't be ignored...
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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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.