Insider Sellers Might Regret Selling Xcel Energy Shares at a Lower Price Than Current Market Value

Xcel Energy Inc.'s (NASDAQ:XEL) stock price has dropped 11% in the previous week, but insiders who sold US$3.3m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$70.13 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Xcel Energy

The Last 12 Months Of Insider Transactions At Xcel Energy

In the last twelve months, the biggest single sale by an insider was when the insider, Brett Carter, sold US$2.1m worth of shares at a price of US$70.53 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$52.69. So it may not shed much light on insider confidence at current levels.

Insiders in Xcel Energy didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Xcel Energy better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Xcel Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Xcel Energy insiders own about US$19m worth of shares. That equates to 0.06% of the company. 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 Does This Data Suggest About Xcel Energy Insiders?

It doesn't really mean much that no insider has traded Xcel Energy shares in the last quarter. We don't take much encouragement from the transactions by Xcel Energy insiders. But we do like the fact that insiders own a fair chunk 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, Xcel Energy has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

Of course Xcel Energy 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.