SolarEdge Technologies Insiders Added US$1.93m Of Stock To Their Holdings

Quite a few insiders have dramatically grown their holdings in SolarEdge Technologies, Inc. (NASDAQ:SEDG) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for SolarEdge Technologies

SolarEdge Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Avery More bought US$1.1m worth of shares at a price of US$71.44 per share. That means that an insider was happy to buy shares at above the current price of US$20.37. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While SolarEdge Technologies insiders bought shares during the last year, they didn't sell. 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!

SolarEdge Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does SolarEdge Technologies Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.0% of SolarEdge Technologies shares, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The SolarEdge Technologies Insider Transactions Indicate?

It doesn't really mean much that no insider has traded SolarEdge Technologies shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think SolarEdge Technologies insiders are doubting the company, and they do own shares. While it's good to be aware of 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 - SolarEdge Technologies has 1 warning sign we think you should be aware of.

Of course SolarEdge Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.