Over the past year, many NET Power Inc. (NYSE:NPWR) insiders sold a significant stake in the company which may have piqued investors' interest.   When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations.  However, if numerous insiders are selling, shareholders should investigate more.    

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing,  we do think it is perfectly logical to keep tabs on what insiders are doing.

NET Power Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Brandon Heffinger, sold US$1.8m worth of shares at a price of US$15.39 per share.   While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price.  The good news is that this large sale was at well above current price of US$10.15.  So it may not tell us anything about how insiders feel about the current share price.  

Insiders in NET Power didn't buy any shares in the last year.    You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below.  If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:NPWR Insider Trading Volume April 13th 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of NET Power

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  We usually like to see fairly high levels of insider ownership.   Insiders own 0.2% of NET Power shares, worth about US$5.3m, according to our data.   However, it's possible that insiders might have an indirect interest through a more complex structure.   We do generally prefer see higher levels of insider ownership.  

So What Does This Data Suggest About NET Power Insiders?

It doesn't really mean much that no insider has traded NET Power shares in the last quarter.      Our analysis of NET Power insider transactions leaves us unenthusiastic.   And usually insiders own more stock in the company, according to our data.      So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.    Case in point: We've spotted 2 warning signs for NET Power you should be aware of.  

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.