Anyone interested in Public Service Enterprise Group Incorporated (NYSE:PEG) should probably be aware that a company insider, Derek DiRisio, recently divested US$131k worth of shares in the company, at an average price of US$60.08 each. However, the silver lining is that the sale only reduced their total holding by-4.1%, so we’re hesitant to read anything much into it, on its own.
Public Service Enterprise Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President & COO of PSEG Company, Ralph LaRossa, for US$1.4m worth of shares, at about US$55.57 per share. That means that an insider was selling shares at slightly below the current price (US$61.39). 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. We note that the biggest single sale was only 25% of Ralph LaRossa’s holding.
In total, Public Service Enterprise Group insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does Public Service Enterprise Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Public Service Enterprise Group insiders own about US$51m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Public Service Enterprise Group Insider Transactions Indicate?
An insider sold Public Service Enterprise Group shares recently, but they didn’t buy any. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. While insiders do own shares, they don’t own a heap, and they have been selling. We’re in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
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