Have Insiders Sold Meridian Energy Limited (NZSE:MEL) Shares Recently?

Investors may wish to note that an insider of Meridian Energy Limited, Guy Te Puka Waipara, recently netted NZ$81k from selling stock, receiving an average price of NZ$5.41. However we note that the sale only shrunk their holding by 4.6%.

See our latest analysis for Meridian Energy

Meridian Energy Insider Transactions Over The Last Year

Notably, that recent sale by Guy Te Puka Waipara is the biggest insider sale of Meridian Energy shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of NZ$5.68. 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 4.6% of Guy Te Puka Waipara's stake.

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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Meridian Energy 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Meridian Energy insiders own about NZ$12m worth of shares (which is 0.08% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Meridian Energy Insider Transactions Indicate?

An insider sold Meridian Energy shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meridian Energy. Case in point: We've spotted 4 warning signs for Meridian Energy you should be aware of, and 1 of them doesn't sit too well with us.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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This article by Simply Wall St is general in nature. 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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