H. Livingston Bought 62% More Shares In FuelCell Energy
Potential FuelCell Energy, Inc. (NASDAQ:FCEL) shareholders may wish to note that the Non-Employee Director, H. Livingston, recently bought US$247k worth of stock, paying US$15.05 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 62%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At FuelCell Energy
In fact, the recent purchase by Non-Employee Director H. Livingston was not their only acquisition of FuelCell Energy shares this year. They previously made an even bigger purchase of US$495k worth of shares at a price of US$18.79 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$15.50). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. H. Livingston was the only individual insider to buy during the last year.
H. Livingston bought a total of 42.75k shares over the year at an average price of US$17.36. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for FuelCell Energy
FuelCell Energy is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.8% of FuelCell Energy shares, worth about US$58m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The FuelCell Energy Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in FuelCell Energy shares, given these transactions (along with notable insider ownership of the company). 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 3 warning signs for FuelCell Energy you should be aware of, and 2 of these can't be ignored.
Of course FuelCell Energy 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.
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