Potential Fluence Energy, Inc. (NASDAQ:FLNC) shareholders may wish to note that the Independent Chair of the Board of Directors, Herman Bulls, recently bought US$196k worth of stock, paying US$6.53 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 40%.
Check out our latest analysis for Fluence Energy
Notably, that recent purchase by Herman Bulls is the biggest insider purchase of Fluence Energy shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$7.36), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Fluence Energy insiders may have bought shares in the last year, but they didn't sell any. They paid about US$8.87 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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 suggests Fluence Energy insiders own 0.3% of the company, worth about US$4.1m. We consider this fairly low insider ownership.
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Fluence Energy insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Fluence Energy has 1 warning sign we think you should be aware of.
Of course Fluence Energy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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