In the last year, several insiders have increased their holdings in Ameresco, Inc. (NYSE:AMRC) stock, suggesting that insider optimism about the company’s prospects has increased.

While we would never suggest that investors should base their decisions solely on the activities of a company’s management, we think it is perfectly logical to keep an eye on the activities of insiders.

Check out our latest analysis for Ameresco

The last 12 months of insider transactions at Ameresco

Over the last year, we found that the largest insider purchase was by founder George Sakellaris, who bought $903,000 worth of shares at a price of about $22.66 per share. While we like to see insider buying, we note that this large purchase was well below the current price of $29.68. Since it was made at a lower price, it doesn’t tell us much about whether insiders might find today’s price attractive.

Over the last twelve months, Ameresco insiders bought shares but did not sell. You can see the insider transactions (by companies and individuals) over the last year in the chart below. By clicking on the chart below, you can see the exact details of each insider transaction!

Ameresco is not the only stock that insiders are buying, so take a look at these free List of companies with insider purchases that remain under the radar.

Insider ownership of Ameresco

For a common shareholder, it’s worth checking how many shares are owned by company insiders. Typically, the higher the percentage owned by insiders, the more likely it is that the insiders are motivated to build the company for the long term. Ameresco insiders own 39% of the company, which is currently worth about $560 million based on the current share price. I like to see this percentage owned by insiders because it increases the likelihood that management is thinking about the interests of shareholders.

So what do Ameresco’s insider transactions mean?

The fact that no insiders traded Ameresco shares in the last quarter doesn’t mean much. But insiders have shown more interest in the stock in the last year. Judging by their transactions and their high insider ownership, Ameresco insiders are confident about the company’s future. In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks Ameresco faces. Our analysis shows 3 warning signs for Ameresco (2 are potentially serious!) and we strongly recommend you look at them before investing.

If you would rather check out another company — one with potentially better financials — then don’t miss this free List of interesting companies with HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.