Have Peabody Energy Insiders Been Selling Stock?

Anyone interested in Peabody Energy Corporation (NYSE:BTU) should probably be aware that the Executive VP & CFO, Mark Spurbeck, recently divested US$295k worth of shares in the company, at an average price of US$29.52 each. The eyebrow raising move amounted to a reduction of 20% in their holding.

View our latest analysis for Peabody Energy

The Last 12 Months Of Insider Transactions At Peabody Energy

Over the last year, we can see that the biggest insider sale was by the Executive VP & COO, Darren Yeates, for US$815k worth of shares, at about US$25.48 per share. That means that an insider was selling shares at slightly below the current price (US$28.23). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 52% of Darren Yeates's holding.

In the last year Peabody Energy insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Peabody Energy insiders own about US$13m worth of shares. That equates to 0.4% of the company. 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 Peabody Energy Tell Us?

An insider hasn't bought Peabody Energy stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Peabody Energy (1 is a bit concerning) you should be aware of.

But note: Peabody 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.