Insiders Could Have Profited By Holding onto T1 Energy Shares Despite 18% Drop

T1 Energy Inc.'s (NYSE:TE) value has fallen 18% in the last week, but insiders who sold US$4.3m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$1.71 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At T1 Energy

Over the last year, we can see that the biggest insider sale was by the Founder & Independent Director, Tore Slettemoen, for US$1.9m worth of shares, at about US$1.74 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.29). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Tore Slettemoen.

Tore Slettemoen sold a total of 2.50m shares over the year at an average price of US$1.71. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for T1 Energy

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Insider Ownership Of T1 Energy

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 8.4% of T1 Energy shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At T1 Energy Tell Us?

It doesn't really mean much that no insider has traded T1 Energy shares in the last quarter. Our analysis of T1 Energy insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing T1 Energy. At Simply Wall St, we've found that T1 Energy has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

But note: T1 Energy 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.