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Insiders who purchased The AES Corporation (NYSE:AES) shares in the past 12 months are unlikely to be deeply impacted by the stock's 5.5% decline over the past week. After taking the recent loss into consideration, the US$1.0m worth of stock they bought is now worth US$1.2m, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for AES
The Last 12 Months Of Insider Transactions At AES
Over the last year, we can see that the biggest insider purchase was by Executive VP & CFO Stephen Coughlin for US$1.0m worth of shares, at about US$21.30 per share. We do like to see buying, but this purchase was made at well below the current price of US$25.92. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
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 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).
Insider Ownership Of AES
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. Insiders own 0.3% of AES shares, worth about US$54m. 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 AES Tell Us?
The fact that there have been no AES insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think AES insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with AES and understanding these should be part of your investment process.
Of course AES may not be the best stock to buy. So you may wish to see this free collection of high quality companies.