One Algonquin Power & Utilities Corp. (TSE:AQN) insider reduced their stake by 43% in the previous year

By
Simply Wall St
Published
January 23, 2022
TSX:AQN
Source: Shutterstock

From what we can see, insiders were net sellers in Algonquin Power & Utilities Corp.'s (TSE:AQN ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View 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 sale was by the Chief Legal Officer & Corporate Secretary, Jennifer Tindale, for CA$408k worth of shares, at about CA$18.60 per share. So we know that an insider sold shares at around the present share price of CA$17.62. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Jennifer Tindale was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSX:AQN Insider Trading Volume January 23rd 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love 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. Insiders own 0.06% of Algonquin Power & Utilities shares, worth about CA$6.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Algonquin Power & Utilities Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Algonquin Power & Utilities shares in the last quarter. The insider transactions at Algonquin Power & Utilities are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Algonquin Power & Utilities is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...

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.

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