Have Insiders Sold Bloom Energy Shares Recently?

We wouldn't blame Bloom Energy Corporation (NYSE:BE) shareholders if they were a little worried about the fact that K. Sridhar, the Co-Founder recently netted about US$820k selling shares at an average price of US$23.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.9%.

View our latest analysis for Bloom Energy

Bloom Energy Insider Transactions Over The Last Year

In fact, the recent sale by K. Sridhar was the biggest sale of Bloom Energy shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$24.47, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 0.9% of K. Sridhar's stake.

Bloom Energy insiders didn't buy any shares over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Bloom Energy insiders own 2.7% of the company, currently worth about US$151m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Bloom Energy Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bloom Energy. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Bloom Energy.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.