Don't Ignore The Insider Selling In Sunnova Energy International

Some Sunnova Energy International Inc. (NYSE:NOVA) shareholders may be a little concerned to see that the Chairman, William Berger, recently sold a substantial US$871k worth of stock at a price of US$11.31 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Sunnova Energy International

The Last 12 Months Of Insider Transactions At Sunnova Energy International

The Independent Director Akbar Mohamed made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$6.92 each. Even though the purchase was made at a significantly lower price than the recent price (US$10.71), 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.

All up, insiders sold more shares in Sunnova Energy International than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Sunnova Energy International insiders own about US$16m worth of shares. That equates to 1.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Sunnova Energy International Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of 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've found that Sunnova Energy International has 5 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Sunnova Energy International 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.