Stock Analysis

One ChargePoint Holdings Insider Raised Stake By 64% In Previous Year

NYSE:CHPT
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Insiders were net buyers of ChargePoint Holdings, Inc.'s (NYSE:CHPT ) stock during the past year. That is, insiders bought more stock than they sold.

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.

Check out our latest analysis for ChargePoint Holdings

The Last 12 Months Of Insider Transactions At ChargePoint Holdings

The Independent Chairman of the Board Bruce Chizen made the biggest insider purchase in the last 12 months. That single transaction was for US$2.9m worth of shares at a price of US$5.79 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.72). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Bruce Chizen was the only individual insider to buy shares in the last twelve months.

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

insider-trading-volume
NYSE:CHPT Insider Trading Volume May 24th 2024

ChargePoint Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At ChargePoint Holdings Have Sold Stock Recently

The last three months saw significant insider selling at ChargePoint Holdings. In total, insiders dumped US$120k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does ChargePoint Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of ChargePoint Holdings shares, worth about US$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The ChargePoint Holdings Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. 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. For example, ChargePoint Holdings has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: ChargePoint Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.