Public Service Enterprise Group Insiders Sold US$5.1m Of Shares Suggesting Hesitancy

Many Public Service Enterprise Group Incorporated (NYSE:PEG) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Public Service Enterprise Group

The insider, Tamara Linde, made the biggest insider sale in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$80.26 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$83.52. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 22% of Tamara Linde's holding.

In total, Public Service Enterprise Group insiders sold more 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!

View our latest analysis for Public Service Enterprise Group

I will like Public Service Enterprise Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Public Service Enterprise Group Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Public Service Enterprise Group shares. In total, Chair, President & CEO Ralph LaRossa sold US$336k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Public Service Enterprise Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Public Service Enterprise Group insiders own 0.1% of the company, worth about US$61m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Public Service Enterprise Group Tell Us?

An insider sold Public Service Enterprise Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Public Service Enterprise Group is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Public Service Enterprise Group (including 1 which makes us a bit uncomfortable).

But note: Public Service Enterprise Group 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 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.