SolarEdge Technologies Insiders Added US$2.08m 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 we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for SolarEdge Technologies

The Last 12 Months Of Insider Transactions At SolarEdge Technologies

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 even when the share price was higher than US$58.20 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$2.1m for 28.18k shares. But they sold 170.00 shares for US$50k. In total, SolarEdge Technologies insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

SolarEdge Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At SolarEdge Technologies Have Bought Stock Recently

Over the last quarter, SolarEdge Technologies insiders have spent a meaningful amount on shares. We can see that Independent Director Avery More paid US$474k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does SolarEdge Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.9% of SolarEdge Technologies shares, worth about US$31m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The SolarEdge Technologies Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in SolarEdge Technologies shares, given these transactions (along with notable insider ownership 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 - SolarEdge Technologies has 3 warning signs we think you should be aware of.

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 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.