Don't Ignore The Insider Selling In Duke Energy

We wouldn't blame Duke Energy Corporation (NYSE:DUK) shareholders if they were a little worried about the fact that Julia Janson, the Executive VP & CEO of Duke Energy Carolinas recently netted about US$1.2m selling shares at an average price of US$116. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Duke Energy

In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Lynn Good, sold US$1.5m worth of shares at a price of US$103 per share. That means that even when the share price was below the current price of US$117, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.9% of Lynn Good's stake.

In the last year Duke Energy insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Duke Energy

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's great to see that Duke Energy insiders own 0.2% of the company, worth about US$148m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Duke Energy Tell Us?

Insiders sold Duke Energy shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Duke Energy is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Duke Energy. At Simply Wall St, we've found that Duke Energy has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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.