For OPAL Fuels Insiders, Selling US$1.0m Of Shares Was A Smart Move

Even though OPAL Fuels Inc. (NASDAQ:OPAL) stock gained 10% last week, insiders who sold US$1.0m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$6.50, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for OPAL Fuels

The Last 12 Months Of Insider Transactions At OPAL Fuels

In the last twelve months, the biggest single sale by an insider was when the insider, Marco Gatti, sold US$1.0m worth of shares at a price of US$6.50 per share. That means that an insider was selling shares at slightly below the current price (US$8.00). 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. We note that the biggest single sale was only 31% of Marco Gatti's holding. Marco Gatti was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid US$680k for 79.27k shares. On the other hand they divested 154.47k shares, for US$1.0m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that OPAL Fuels insiders own 1.1% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At OPAL Fuels Tell Us?

The fact that there have been no OPAL Fuels insider transactions recently certainly doesn't bother us. Still, the insider transactions at OPAL Fuels in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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 - OPAL Fuels has 1 warning sign we think you should be aware of.

But note: OPAL Fuels 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.