Have CES Energy Solutions Insiders Been Selling Stock?
We wouldn't blame CES Energy Solutions Corp. (TSE:CEU) shareholders if they were a little worried about the fact that John Hooks, the Independent Director recently netted about CA$1.7m selling shares at an average price of CA$18.98. However, that sale only accounted for 9.2% of their holding, so arguably it doesn't say much about their conviction.
CES Energy Solutions Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Kenneth Zinger, for CA$3.8m worth of shares, at about CA$18.41 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$20.09. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 10% of Kenneth Zinger's stake.
In the last twelve months insiders purchased 319.55k shares for CA$4.0m. But they sold 877.47k shares for CA$15m. All up, insiders sold more shares in CES Energy Solutions than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for CES Energy Solutions
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).
Does CES Energy Solutions Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CES Energy Solutions insiders own about CA$145m worth of shares (which is 3.6% 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 CES Energy Solutions Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at CES Energy Solutions, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that CES Energy Solutions is growing earnings. 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. Case in point: We've spotted 2 warning signs for CES Energy Solutions you should be aware of.
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.