We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Hannon Armstrong Sustainable Infrastructure Capital Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Executive VP & Head of Portfolio Management Group Daniel McMahon sold US$457k worth of shares at a price of US$22.84 per share. That means that even when the share price was below the current price of US$25.26, an insider wanted to cash in some shares. While sellers have a variety of reasons for selling, this isn’t particularly great to see. When an insider sells below the current price, it does tend to make us wonder about the current valuation. It is worth noting that this sale was only 8.5% of Daniel McMahon’s holding. The only individual insider seller over the last year was Daniel McMahon.
Happily, we note that in the last year insiders paid US$589k for 30.31k shares. On the other hand they divested 20.00k shares, for US$457k. In the last twelve months there was more buying than selling by Hannon Armstrong Sustainable Infrastructure Capital insiders. Their average price was about US$19.42. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Hannon Armstrong Sustainable Infrastructure Capital Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.8% of Hannon Armstrong Sustainable Infrastructure Capital shares, worth about US$60m. 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 Hannon Armstrong Sustainable Infrastructure Capital Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think Hannon Armstrong Sustainable Infrastructure Capital insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Hannon Armstrong Sustainable Infrastructure Capital.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.