This Insider Has Just Sold Shares In Eversource Energy (NYSE:ES)

By
Simply Wall St
Published
May 11, 2022
NYSE:ES
Source: Shutterstock

Anyone interested in Eversource Energy (NYSE:ES) should probably be aware that the Independent Trustee, Frederica Williams, recently divested US$169k worth of shares in the company, at an average price of US$90.84 each. However, the silver lining is that the sale only reduced their total holding by 8.4%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Eversource Energy

Eversource Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & General Counsel, Gregory Butler, sold US$986k worth of shares at a price of US$82.16 per share. That means that even when the share price was below the current price of US$89.13, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. We note that the biggest single sale was only 14% of Gregory Butler's holding.

Eversource Energy insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:ES Insider Trading Volume May 11th 2022

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

Insider Ownership of Eversource Energy

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. We usually like to see fairly high levels of insider ownership. It appears that Eversource Energy insiders own 0.3% of the company, worth about US$82m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Eversource Energy Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Eversource Energy makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eversource Energy. To that end, you should learn about the 3 warning signs we've spotted with Eversource Energy (including 1 which is concerning).

Of course Eversource Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.