Over the last year, a good number of insiders have significantly increased their holdings in Sunnova Energy International Inc. (NYSE:NOVA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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 Sunnova Energy International

The Last 12 Months Of Insider Transactions At Sunnova Energy International

Over the last year, we can see that the biggest insider purchase was by Independent Director Akbar Mohamed for US$1.1m worth of shares, at about US$6.92 per share. That means that an insider was happy to buy shares at above the current price of US$4.26. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$2.1m for 441.02k shares. But insiders sold 185.81k shares worth US$1.5m. In total, Sunnova Energy International insiders bought more than they sold over the last year. Their average price was about US$4.71. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sunnova Energy International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Sunnova Energy International Insiders Bought Stock Recently

Over the last quarter, Sunnova Energy International insiders have spent a meaningful amount on shares. Overall, three insiders shelled out US$1.0m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Our data indicates that Sunnova Energy International insiders own about US$7.9m worth of shares (which is 1.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Sunnova Energy International Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Sunnova Energy International insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sunnova Energy International. Case in point: We've spotted 5 warning signs for Sunnova Energy International you should be aware of, and 3 of these are significant.

But note: Sunnova Energy International 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 of direct interests only, but not derivative transactions or indirect interests.

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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.