Multiple insiders secured a larger position in Ameresco, Inc. (NYSE:AMRC) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Ameresco

In the last twelve months, the biggest single purchase by an insider was when Founder George Sakellaris bought US$1.2m worth of shares at a price of US$9.96 per share. We do like to see buying, but this purchase was made at well below the current price of US$12.36. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Ameresco insiders bought shares during the last year, they didn't sell. Their average price was about US$13.11. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ameresco

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Ameresco Insiders Bought Stock Recently

Over the last quarter, Ameresco insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$1.3m worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ameresco insiders own about US$275m worth of shares (which is 42% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ameresco Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Ameresco insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. To that end, you should learn about the 3 warning signs we've spotted with Ameresco (including 1 which can't be ignored).

But note: Ameresco 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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