Spruce Power Holding Corporation's (NYSE:SPRU) value has fallen 13% in the last week, but insiders who sold US$202k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$5.06 is still lower than the current share price.

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.

The Last 12 Months Of Insider Transactions At Spruce Power Holding

The Independent Director, Clara McBane, made the biggest insider sale in the last 12 months. That single transaction was for US$202k worth of shares at a price of US$5.06 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.04. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Clara McBane.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Spruce Power Holding insiders have about 4.6% of the stock, worth approximately US$2.7m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Spruce Power Holding Tell Us?

The fact that there have been no Spruce Power Holding insider transactions recently certainly doesn't bother us. Our analysis of Spruce Power Holding insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. 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.

But note: Spruce Power Holding 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.

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.