Amee Chande Is The Independent Director of Algonquin Power & Utilities Corp. (TSE:AQN) And Just Spent US$100k On Shares

Even if it's not a huge purchase, we think it was good to see that Amee Chande, the Independent Director of Algonquin Power & Utilities Corp. (TSE:AQN) recently shelled out CA$100k to buy stock, at CA$11.31 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Algonquin Power & Utilities

The Last 12 Months Of Insider Transactions At Algonquin Power & Utilities

Over the last year, we can see that the biggest insider purchase was by President Arun Banskota for CA$1.5m worth of shares, at about CA$12.30 per share. That means that an insider was happy to buy shares at above the current price of CA$11.34. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Algonquin Power & Utilities insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Algonquin Power & Utilities 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Algonquin Power & Utilities insiders own about CA$8.2m worth of shares (which is 0.1% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Algonquin Power & Utilities Tell Us?

It is good to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Algonquin Power & Utilities insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Algonquin Power & Utilities. When we did our research, we found 3 warning signs for Algonquin Power & Utilities (2 don't sit too well with us!) that we believe deserve your full attention.

Of course Algonquin Power & Utilities 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.