Some Xcel Energy Inc. (NASDAQ:XEL) shareholders may be a little concerned to see that the Chairman & CEO, Benjamin Gwynn Fowke, recently sold a substantial US$8.7m worth of stock at a price of US$71.71 per share. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Xcel Energy
Notably, that recent sale by Benjamin Gwynn Fowke is the biggest insider sale of Xcel Energy shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$70.81. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Xcel Energy insiders didn't buy any shares 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!
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Insider Ownership of Xcel 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Xcel Energy insiders own 0.2% of the company, worth about US$73m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Xcel Energy Tell Us?
Insiders sold Xcel Energy shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Xcel Energy is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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 that end, you should learn about the 3 warning signs we've spotted with Xcel Energy (including 1 which is a bit concerning).
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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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