Have Insiders Sold CES Energy Solutions Shares Recently?

We wouldn't blame CES Energy Solutions Corp. (TSE:CEU) shareholders if they were a little worried about the fact that Kyle Kitagawa, the Independent Chairman of the Board recently netted about CA$3.0m selling shares at an average price of CA$10.01. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

Check out our latest analysis for CES Energy Solutions

CES Energy Solutions Insider Transactions Over The Last Year

In fact, the recent sale by Independent Chairman of the Board Kyle Kitagawa was not their only sale of CES Energy Solutions shares this year. They previously made an even bigger sale of -CA$7.5m worth of shares at a price of CA$7.05 per share. That means that even when the share price was below the current price of CA$9.76, an insider wanted to cash in some shares. 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. 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. This single sale was just 40% of Kyle Kitagawa's stake.

In the last twelve months insiders purchased 1.17m shares for CA$8.2m. But insiders sold 2.98m shares worth CA$21m. All up, insiders sold more shares in CES Energy Solutions than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and 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!

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Does CES Energy Solutions Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. CES Energy Solutions insiders own about CA$78m worth of shares. That equates to 3.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CES Energy Solutions Insider Transactions Indicate?

Insiders haven't bought CES Energy Solutions stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that CES Energy Solutions is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. For example - CES Energy Solutions has 2 warning signs we think you should be aware of.

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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.