Insider Buying: The Evergy, Inc. (NYSE:EVRG) Executive VP & CFO Just Bought 55% More Shares

By
Simply Wall St
Published
September 25, 2021
NYSE:EVRG
Source: Shutterstock

Evergy, Inc. (NYSE:EVRG) shareholders (or potential shareholders) will be happy to see that the Executive VP & CFO, Kirkland Andrews, recently bought a whopping US$501k worth of stock, at a price of US$63.67. That purchase boosted their holding by 55%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Evergy

Evergy Insider Transactions Over The Last Year

The insider, Anthony Somma, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$53.51 each. That means that an insider was selling shares at slightly below the current price (US$63.15). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 72% of Anthony Somma's holding.

In the last twelve months insiders purchased 35.73k shares for US$2.1m. But they sold 43.30k shares for US$2.4m. Over the last year we saw more insider selling of Evergy shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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:EVRG Insider Trading Volume September 25th 2021

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of Evergy shares, worth about US$47m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Evergy Insiders?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Evergy, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Evergy that deserve your attention before buying any shares.

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.

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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.
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