David Lesar Is The Director of CenterPoint Energy, Inc. (NYSE:CNP) And Just Spent US$308k On Shares

Potential CenterPoint Energy, Inc. (NYSE:CNP) shareholders may wish to note that the Director, David Lesar, recently bought US$308k worth of stock, paying US$17.98 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for CenterPoint Energy

The Last 12 Months Of Insider Transactions At CenterPoint Energy

The Executive Chairman of the Board, Milton Carroll, made the biggest insider sale in the last 12 months. That single transaction was for US$588k worth of shares at a price of US$29.76 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$16.90. So it may not shed much light on insider confidence at current levels. Milton Carroll was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$362k for 20.11k shares. But they sold 19780 shares for US$588k. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does CenterPoint Energy Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CenterPoint Energy insiders own about US$21m worth of shares. That equates to 0.2% 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.

What Might The Insider Transactions At CenterPoint Energy Tell Us?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in CenterPoint Energy, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with CenterPoint Energy (including 1 which is significant).

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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