The recent 9.0% drop in Altus Power, Inc.'s (NYSE:AMPS) stock could come as a blow to insiders who purchased US$1.0m worth of stock at an average buy price of US$10.00 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$616k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Altus Power
Altus Power Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director William Concannon for US$1.0m worth of shares, at about US$10.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.16). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. William Concannon was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Altus Power is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Altus Power Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Altus Power insiders own 39% of the company, currently worth about US$366m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Altus Power Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Altus Power insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for 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. To help with this, we've discovered 5 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Altus Power.