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Don't Ignore The Insider Selling In Bloom Energy
Some Bloom Energy Corporation (NYSE:BE) shareholders may be a little concerned to see that the Independent Director, John Chambers, recently sold a substantial US$1.8m worth of stock at a price of US$203 per share. However, that sale only accounted for 2.6% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Bloom Energy
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, K. Sridhar, sold US$34m worth of shares at a price of US$170 per share. That means that an insider was selling shares at around the current price of US$168. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Bloom Energy insiders didn't buy any shares over the last year. 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!
Check out our latest analysis for Bloom Energy
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Insider Ownership Of Bloom Energy
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bloom Energy insiders own about US$1.0b worth of shares (which is 1.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Bloom Energy Insider Transactions Indicate?
Insiders haven't bought Bloom Energy stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Bloom Energy 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. While it's good to be aware of 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. While conducting our analysis, we found that Bloom Energy has 3 warning signs and it would be unwise to ignore these.
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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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