Multiple insiders secured a larger position in Dominion Energy, Inc. (NYSE:D) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Dominion Energy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Robert Blue for US$1m worth of shares, at about US$69.44 per share. That implies that an insider found the current price of US$74.58 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Dominion Energy insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 16.40k shares worth US$1.1m. On the other hand they divested 2.95k shares, for US$251k. In total, Dominion Energy insiders bought more than they sold over the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Dominion Energy
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. Insiders own 0.1% of Dominion Energy shares, worth about US$85m. 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 Does This Data Suggest About Dominion Energy Insiders?
It doesn't really mean much that no insider has traded Dominion Energy shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Dominion Energy and we see no evidence to suggest they are worried about the future. 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. For example, Dominion Energy has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.
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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