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Potential SolarEdge Technologies, Inc. (NASDAQ:SEDG) shareholders may wish to note that the Independent Chairman, Avery More, recently bought US$411k worth of stock, paying US$13.70 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 13%.
View our latest analysis for SolarEdge Technologies
SolarEdge Technologies Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman Avery More was not the only time they bought SolarEdge Technologies shares this year. They previously made an even bigger purchase of US$1.1m worth of shares at a price of US$13.65 per share. Even though the purchase was made at a significantly lower price than the recent price (US$16.05), we still think insider buying is a positive. 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.
SolarEdge Technologies insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
SolarEdge Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that SolarEdge Technologies insiders own 1.3% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At SolarEdge Technologies Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest SolarEdge Technologies insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SolarEdge Technologies. Case in point: We've spotted 2 warning signs for SolarEdge Technologies you should be aware of.