Selling Altus Power Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Even though Altus Power, Inc. (NYSE:AMPS) has fallen by 15% over the past week , insiders who sold US$933k worth of 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$5.87 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Altus Power

Altus Power Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Construction Officer, Anthony Savino, sold US$459k worth of shares at a price of US$6.22 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. The silver lining is that this sell-down took place above the latest price (US$3.85). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 170.00k shares worth US$822k. But they sold 158.95k shares for US$933k. In total, Altus Power insiders sold more than they bought 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!

I will like Altus Power better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Altus Power Have Bought Stock Recently

Over the last quarter, Altus Power insiders have spent a meaningful amount on shares. We can see that CEO & Director Gregg Felton paid US$60k for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership Of Altus Power

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Altus Power insiders own 37% of the company, currently worth about US$228m 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 Altus Power Insiders?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that Altus Power insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Altus Power (1 shouldn't be ignored!) that we believe deserve your full attention.

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.

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.