We wouldn't blame NiSource Inc. (NYSE:NI) shareholders if they were a little worried about the fact that Lloyd Yates, the President recently netted about US$950k selling shares at an average price of US$47.73. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.2%.

The Last 12 Months Of Insider Transactions At NiSource

In fact, the recent sale by Lloyd Yates was the biggest sale of NiSource shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$46.22. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in NiSource didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of NiSource shares, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About NiSource Insiders?

Insiders haven't bought NiSource stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since NiSource is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course NiSource 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.

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.