Don't Ignore The Insider Selling In Duke Energy

Some Duke Energy Corporation (NYSE:DUK) shareholders may be a little concerned to see that the Executive VP & CEO of Duke Energy Carolinas, Julia Janson, recently sold a substantial US$1.1m worth of stock at a price of US$113 per share. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

View our latest analysis for Duke Energy

Duke Energy Insider Transactions Over The Last Year

The Chairman & CEO, Lynn Good, made the biggest insider sale in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$103 each. That means that even when the share price was below the current price of US$113, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 2.9% of Lynn Good's stake.

Insiders in Duke 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Duke Energy

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Duke Energy insiders own about US$121m worth of shares (which is 0.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Duke Energy Insider Transactions Indicate?

Insiders haven't bought Duke Energy stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Duke Energy is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Duke Energy (including 1 which is potentially serious).

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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.