Insider Buying: Energy Vault Holdings Independent Director Bought US$119k Of Shares

Investors who take an interest in Energy Vault Holdings, Inc. (NYSE:NRGV) should definitely note that the Independent Director, Dylan Hixon, recently paid US$3.75 per share to buy US$119k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn’t a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Energy Vault Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Michael Beer, sold US$246k worth of shares at a price of US$4.91 per share. 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$3.86. So it may not shed much light on insider confidence at current levels. Michael Beer was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 323.71k shares for US$782k. But they sold 100.00k shares for US$354k. Overall, Energy Vault Holdings insiders were net buyers during the last year. They paid about US$2.41 on average. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. 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!

Check out our latest analysis for Energy Vault Holdings

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Insider Ownership Of Energy Vault Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Energy Vault Holdings insiders own about US$69m worth of shares. That equates to 10% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The Energy Vault Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Energy Vault Holdings we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we’ve found that Energy Vault Holdings has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

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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.