We wouldn't blame SolarEdge Technologies, Inc. (NASDAQ:SEDG) shareholders if they were a little worried about the fact that Avery More, the Independent Director recently netted about US$3.9m selling shares at an average price of US$321. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.
SolarEdge Technologies Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Avery More was not their only sale of SolarEdge Technologies shares this year. They previously made an even bigger sale of -US$5.9m worth of shares at a price of US$280 per share. That means that even when the share price was below the current price of US$298, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 15%of Avery More's holding.
SolarEdge Technologies insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and 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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I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. SolarEdge Technologies insiders own 3.0% of the company, currently worth about US$460m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About SolarEdge Technologies Insiders?
Insiders haven't bought SolarEdge Technologies stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. While conducting our analysis, we found that SolarEdge Technologies has 3 warning signs and it would be unwise to ignore these.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
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