Insiders At Ameren Sold US$3.8m In Stock, Alluding To Potential Weakness

Ameren Corporation +1.89%

Ameren Corporation




Many Ameren Corporation (NYSE:AEE) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ameren

The Last 12 Months Of Insider Transactions At Ameren

Over the last year, we can see that the biggest insider sale was by the Chief Nuclear Officer & Senior VP of Ameren Missouri, Fadi Diya, for US$3.0m worth of shares, at about US$82.37 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$73.96). So it may not tell us anything about how insiders feel about the current share price.

Ameren insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:AEE Insider Trading Volume March 30th 2024

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Ameren Insiders Are Selling The Stock

The last three months saw significant insider selling at Ameren. Specifically, Chairman & President of Ameren Transmission Company of Illinois Shawn Schukar ditched US$166k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

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. It appears that Ameren insiders own 0.4% of the company, worth about US$79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Ameren Insiders?

An insider sold Ameren shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Ameren is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ameren. When we did our research, we found 2 warning signs for Ameren (1 shouldn't be ignored!) that we believe deserve your full attention.

But note: Ameren 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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