Anyone interested in CMS Energy Corporation (NYSE:CMS) should probably be aware that the Senior VP of Customer Experience & Technology and Chief Information Officer, Brian Rich, recently divested US$239k worth of shares in the company, at an average price of US$59.70 each. On the bright side, that sale was only-6.2% of their holding, so we doubt it’s very meaningful, on its own.
CMS Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, John Russell, sold US$930k worth of shares at a price of US$55.35 per share. That means that an insider was selling shares at slightly below the current price (US$61.27). 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was only 5.3% of John Russell’s holding.
Over the last year, we note insiders sold 49943 shares worth US$2.7m. In the last year CMS Energy insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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. CMS Energy insiders own 0.7% of the company, currently worth about US$114m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The CMS Energy Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. On the plus side, CMS Energy makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in CMS Energy, you should check out this free report on analyst forecasts for the company.
Of course CMS 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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