Insider Buys Additional US$282k In Sunnova Energy International Stock

Investors who take an interest in Sunnova Energy International Inc. (NYSE:NOVA) should definitely note that the Independent Director, Corbin Robertson, recently paid US$3.32 per share to buy US$282k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Sunnova Energy International

Sunnova Energy International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Akbar Mohamed for US$1.1m worth of shares, at about US$6.92 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.75). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 237.50k shares for US$1.3m. On the other hand they divested 185.81k shares, for US$1.5m. In total, Sunnova Energy International insiders sold more than they bought over the last year. The average sell price was around US$8.00. Insider selling doesn't make us excited to buy. But the selling was at much higher prices than the current share price (US$3.75), so it probably doesn't tell us a lot about the value on offer today. 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!

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 Sunnova Energy International

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Sunnova Energy International insiders own 1.2% of the company, worth about US$6.2m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Sunnova Energy International Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Sunnova Energy International, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Sunnova Energy International you should be aware of, and 3 of them are a bit unpleasant.

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.