Northland Power (TSX:NPI): Valuation Check After Director’s 7,000-Share Insider Purchase

A director at Northland Power (TSX:NPI) just bought 7,000 common shares, a fresh insider purchase that naturally raises the question: is the market underappreciating this dividend paying renewables name?

See our latest analysis for Northland Power.

That insider purchase comes after a tough stretch for the stock, with a roughly 32 percent 1 month share price return decline and multi year total shareholder returns still deeply negative. This suggests sentiment may be washed out even as Northland continues to grow revenue and recently maintained its regular monthly dividend.

If this kind of insider conviction has you reassessing the space, it could be a good moment to explore fast growing stocks with high insider ownership as potential fresh ideas beyond utilities.

With shares down sharply but analysts still seeing upside and earnings momentum improving, are investors overlooking a mispriced renewables cash flow story, or is the current valuation already reflecting Northland Power's next leg of growth?

Most Popular Narrative: 22.8% Undervalued

Against Northland Power's last close at CA$17.23, the most popular narrative implies materially higher fair value, framing recent weakness as a potential mispricing.

The imminent commissioning of Hai Long (Taiwan) and Baltic Power (Poland), which will together add over 2 GW of gross capacity and diversify Northland's offshore wind exposure geographically, aligns with robust long-term government decarbonization mandates and strong policy support across Europe and Asia. As these large projects reach commercial operation, they are expected to drive significant step-changes in EBITDA and revenue growth.

Read the complete narrative.

Want to see how a projected profit reboot, expanding margins, and a richer future earnings multiple all converge into that higher fair value signal? The full narrative explains the growth runway, the cash flow inflection, and the ambitious valuation bridge that connects today’s price with tomorrow’s expectations.

Result: Fair Value of $22.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weak wind conditions, curtailments, and higher financing costs could pressure cash flows and derail the upbeat valuation narrative on which investors are leaning.

Find out about the key risks to this Northland Power narrative.

Build Your Own Northland Power Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Northland Power research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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• Look for potential mispricings by targeting companies trading below intrinsic value through these 906 undervalued stocks based on cash flows that show strong cash flow support for future returns.
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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.

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