Energy Vault Holdings, Inc. (NYSE:NRGV) insiders are still down US$7.0k after purchasing last year, recent gain helped regain some losses
Insiders who bought US$198k worth of Energy Vault Holdings, Inc. (NYSE:NRGV) stock in the last year recovered part of their losses as the stock rose by 19% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$7.0k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Energy Vault Holdings
Energy Vault Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Robert Piconi bought US$100k worth of shares at a price of US$5.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.05). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. The only individual insider to buy over the last year was Robert Piconi.
Robert Piconi purchased 37.80k shares over the year. The average price per share was US$5.23. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
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. Energy Vault Holdings insiders own 16% of the company, currently worth about US$111m 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 Do The Energy Vault Holdings Insider Transactions Indicate?
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. Judging from their transactions, and high insider ownership, Energy Vault Holdings insiders feel good about the company's 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. Case in point: We've spotted 2 warning signs for Energy Vault Holdings you should be aware of.
But note: Energy Vault Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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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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