Despite the fact that Bloom Energy Corporation's (NYSE:BE) value has dropped 10% in the last week insiders who sold US$284k worth of stock in the past 12 months have had less success. Given that the average selling price of US$14.62 is still lower than the current share price, insiders would probably have been better off keeping their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Bloom Energy
The insider, Guillermo Brooks, made the biggest insider sale in the last 12 months. That single transaction was for US$226k worth of shares at a price of US$17.11 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$9.63. So it is hard to draw any strong conclusion from it.
In the last year Bloom Energy insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Bloom 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.
Bloom Energy Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Bloom Energy shares. Specifically, Executive VP Shawn Soderberg ditched US$58k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of Bloom Energy
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. Insiders own 2.7% of Bloom Energy shares, worth about US$58m. 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 Bloom Energy Insider Transactions Indicate?
An insider hasn't bought Bloom Energy stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Bloom Energy and understanding it should be part of your investment process.
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.