While not a huge purchase, we think it was good to see that Robert Piconi, the co-founder of Energy Vault Holdings, Inc. (NYSE: NRGV) recently paid US$100,000 to buy shares, at US$5.26 per share. Although the purchase is not large, either in percentage or in absolute value, it can be considered a good sign.
The last 12 months of insider trading at Energy Vault Holdings
In fact, the recent purchase by Robert Piconi was the largest purchase of Energy Vault Holdings stock by an insider in the past twelve months, according to our records. This means that even when the stock price was above US$5.25 (the recent price), an insider wanted to buy some stock. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. We always take careful note of the price paid by insiders when buying stocks. Generally speaking, it catches our attention when an insider has bought stocks at prices higher than the current price, because it suggests that they thought the stock was worth buying, even at a higher price. Robert Piconi was the only individual insider to buy shares in the last twelve months.
The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. We generally like to see fairly high levels of insider ownership. It’s great to see Energy Vault Holdings insiders owning 16% of the company, worth around $118 million. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
What could insider trading at Energy Vault Holdings tell us?
The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. Along with strong insider ownership, this analysis suggests that insiders are quite optimistic about Energy Vault Holdings. That’s what I like to see! So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Our analysis shows 2 warning signs for Energy Vault Holdings (1 cannot be ignored!) and we strongly recommend that you consult them before investing.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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