Spruce Power Holding Insiders Got A Good Deal Selling At US$5.06

While it’s been a great week for Spruce Power Holding Corporation (NYSE:SPRU) shareholders after stock gained 11%, not so much for insiders who sold stock over the past year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Spruce Power Holding

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Clara McBane, sold US$202k worth of shares at a price of US$5.06 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$5.61. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 95% of Clara McBane's holding. Clara McBane was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Spruce Power Holding

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Spruce Power Holding Have Sold Stock Recently

The last three months saw significant insider selling at Spruce Power Holding. In total, Independent Director Clara McBane dumped US$202k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Spruce Power Holding

For a common shareholder, it is worth checking how many shares are held by company 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 suggests Spruce Power Holding insiders own 3.0% of the company, worth about US$2.8m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Spruce Power Holding Tell Us?

An insider sold Spruce Power Holding shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Spruce Power Holding (2 can't be ignored) you should be aware of.

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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.