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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Ameresco, Inc. (NYSE:AMRC).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Check out our latest analysis for Ameresco
The Last 12 Months Of Insider Transactions At Ameresco
Over the last year, we can see that the biggest insider sale was by the Director, Francis Wisneski, for US$88k worth of shares, at about US$16.00 per share. So what is clear is that an insider saw fit to sell at around the current price of US$15.87. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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. Francis Wisneski was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 13500 shares worth US$199k. On the other hand they divested 13516 shares, for US$213k. Francis Wisneski ditched 13516 shares over the year. The average price per share was US$15.73. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Ameresco better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Ameresco Insiders Bought Stock Recently
It's good to see that Ameresco insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$71k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Ameresco Boast High 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's great to see that Ameresco insiders own 58% of the company, worth about US$429m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.