Dominion Energy, Inc. (NYSE:D) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 4.1% decline in the stock price. Even after accounting for the recent loss, the US$1.1m worth of stock purchased by them is now worth US$1.2m or in other words, their investment continues to give good returns.
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 Dominion Energy
The President Robert Blue made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$69.44 each. That means that an insider was happy to buy shares at around the current price of US$74.12. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Dominion Energy share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 16.40k shares worth US$1.1m. But they sold 2.95k shares for US$251k. Overall, Dominion Energy insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dominion Energy insiders own about US$84m worth of shares. That equates to 0.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Dominion Energy Tell Us?
It doesn't really mean much that no insider has traded Dominion Energy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Dominion Energy and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Dominion Energy (1 can't be ignored) you should be aware of.
Of course Dominion 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, but not derivative transactions.
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.
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