It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Dominion Energy, Inc.'s (NYSE:D) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Dominion Energy Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Robert Blue bought US$250k worth of shares at a price of US$75.29 per share. Even though the purchase was made at a significantly lower price than the recent price (US$87.40), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Dominion Energy insiders bought shares during the last year, they didn't sell. 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!
Dominion Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Dominion Energy Insiders Bought Stock Recently
Over the last quarter, Dominion Energy insiders have spent a meaningful amount on shares. We can see that President Robert Blue paid US$249k for shares in the company. No-one sold. This makes one think the business has some good points.
Does Dominion Energy 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. It appears that Dominion Energy insiders own 0.1% of the company, worth about US$83m. 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 Dominion Energy Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Dominion Energy insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Dominion Energy (of which 1 can't be ignored!) you should know about.
But note: Dominion Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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.