Possible Turnaround For Algonquin Power & Utilities Insiders, Still Down US$972k

Some of the losses seen by insiders who purchased US$2.96m worth of Algonquin Power & Utilities Corp. (TSE:AQN) shares over the past year were recovered after the stock increased by 11% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$972k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Algonquin Power & Utilities

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

The insider Arun Banskota made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.5m worth of shares at a price of CA$12.30 each. That means that an insider was happy to buy shares at above the current price of CA$7.86. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

Over the last year, we can see that insiders have bought 253.36k shares worth CA$3.0m. But insiders sold 20.00k shares worth CA$232k. In total, Algonquin Power & Utilities insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Algonquin Power & Utilities is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Algonquin Power & Utilities insiders own 0.06% of the company, worth about CA$3.5m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Algonquin Power & Utilities Insiders?

The fact that there have been no Algonquin Power & Utilities insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Algonquin Power & Utilities insiders bought more shares in the company. While we like knowing 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Algonquin Power & Utilities.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.