Potential Sempra Energy (NYSE:SRE) shareholders may wish to note that the Executive VP & Group President, Dennis Arriola, recently bought US$101k worth of stock, paying US$101 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 37%.
The Last 12 Months Of Insider Transactions At Sempra Energy
In the last twelve months, the biggest single sale by an insider was when the insider, Joseph Householder, sold US$6.8m worth of shares at a price of US$135 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$104. So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 3.00k shares for US$395k. On the other hand they divested 65427 shares, for US$8.9m. Over the last year we saw more insider selling of Sempra Energy shares, than buying. The sellers received a price of around US$137, on average. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$104. You can see the insider transactions (by 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!
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Many investors like to check how much of a company is owned by 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. Sempra Energy insiders own about US$44m worth of shares. That equates to 0.1% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Sempra Energy Insiders?
It’s certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Sempra Energy insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Sempra Energy. To help with this, we’ve discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Sempra Energy.
Of course Sempra Energy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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