Anyone interested in Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA) should probably be aware that the Independent Director, John Eber, recently divested US$145k worth of shares in the company, at an average price of US$9.65 each. The eyebrow raising move amounted to a reduction of 40% in their holding.
Infrastructure and Energy Alternatives Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Chair of the Board, Derek Glanvill, for US$469k worth of shares, at about US$18.56 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$9.84). So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 7.57k shares for US$73k. But they sold 84.48k shares for US$1.4m. All up, insiders sold more shares in Infrastructure and Energy Alternatives than they bought, over the last year. 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 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).
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. It appears that Infrastructure and Energy Alternatives insiders own 7.0% of the company, worth about US$33m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Infrastructure and Energy Alternatives Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Infrastructure and Energy Alternatives, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. Be aware that Infrastructure and Energy Alternatives is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course Infrastructure and Energy Alternatives 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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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.