Have Insiders Sold AXIA Energia Shares Recently?

We wouldn't blame AXIA Energia SA (BVMF:AXIA3) shareholders if they were a little worried about the fact that Pedro de Lima Filho, the Independent Director recently netted about R$91m selling shares at an average price of R$58.92. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.7%.

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The Last 12 Months Of Insider Transactions At AXIA Energia

Notably, that recent sale by Pedro de Lima Filho is the biggest insider sale of AXIA Energia shares that we've seen in the last year. That means that an insider was selling shares at below the current price (R$59.38). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 6.7% of Pedro de Lima Filho's holding.

In the last twelve months insiders purchased 2.04m shares for R$111m. But insiders sold 13.34m shares worth R$729m. Over the last year we saw more insider selling of AXIA Energia shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for AXIA Energia

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).

Insider Ownership Of AXIA Energia

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. AXIA Energia insiders own 1.5% of the company, currently worth about R$2.6b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At AXIA Energia Tell Us?

Unfortunately, there has been more insider selling of AXIA Energia stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since AXIA Energia is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - AXIA Energia has 4 warning signs we think you should be aware of.

But note: AXIA Energia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.