Investors who take an interest in Sunnova Energy International Inc. (NYSE:NOVA) should definitely note that the Chairman, William Berger, recently paid US$9.18 per share to buy US$110k worth of the stock. Although the purchase only increased their holding by 5.6%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Sunnova Energy International
Independent Director Anne Andrew made the biggest insider purchase in the last 12 months. That single transaction was for US$149k worth of shares at a price of US$9.91 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$7.43). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Sunnova Energy International insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Sunnova Energy International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Sunnova Energy International Boast High Insider Ownership?
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. Based on our data, Sunnova Energy International insiders have about 0.5% of the stock, worth approximately US$3.0m. However, it’s possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Sunnova Energy International Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Sunnova Energy International stock. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Be aware that Sunnova Energy International is showing 3 warning signs in our investment analysis, and 1 of those is concerning…
But note: Sunnova Energy International 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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