A NRG Energy, Inc. (NYSE:NRG) insider lowered their holding by 33% earlier this year

By
Simply Wall St
Published
April 11, 2022
NYSE:NRG
Source: Shutterstock

From what we can see, insiders were net sellers in NRG Energy, Inc.'s (NYSE:NRG ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for NRG Energy

NRG Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, David Callen, for US$533k worth of shares, at about US$40.10 per share. So we know that an insider sold shares at around the present share price of US$39.55. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. David Callen was the only individual insider to sell shares in the last twelve months.

David Callen sold a total of 20.30k shares over the year at an average price of US$41.18. 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!

insider-trading-volume
NYSE:NRG Insider Trading Volume April 11th 2022

I will like NRG Energy better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NRG Energy insiders own about US$60m worth of shares. That equates to 0.6% 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.

What Might The Insider Transactions At NRG Energy Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at NRG Energy in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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. For instance, we've identified 4 warning signs for NRG Energy (3 don't sit too well with us) you should be aware of.

But note: NRG Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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