SolarCity Corp (NASDAQ: SCTY)
SolarCity is having a wonderful day in the market following recent downtrends on the stock. Today’s gains are for a relatively good reason. Recently, we saw a big insider buy on the stock, leading to investor excitement. Today, we’ll talk about why insider buying is important for investors to watch, what we saw from SCTY insiders, and what we can expect to see from SolarCity moving forward.
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Why It’s Important To Watch Insider Buying
As investors, we can do quite a bit of research and learn quite a bit about the companies we choose to invest in. I’ve done that with SCTY as well as several other stocks. However, there’s only so much research that can be done. The reality is that there is tons of information about any publicly traded company that only the insiders know. As a result, we tend to see insider buying before big bullish moves in the market and insider selling before big bearish moves in the market as the insiders react to the information they are made aware of. So, by watching insider buys and sales, we can get a good idea of what we can expect to see from the value of a stock moving forward.
SCTY Sees A Big Insider Buy
Earlier today, it was announced that there was a big insider buy on SCTY. The insider in the center of the story is Elon Musk, the Director of SolarCity. Recently, a big transaction between Elon Musk and SCTY was disclosed through a legal filing with the SEC. If you would like to read the filing, click here. Through the SEC filing, we learned that Elon Musk purchased more than a half a million shares in SCTY. In fact, the total number of shares purchased came in at 569,680. The shares were purchased at a price of $17.56 per share, bringing the total value of the sale to $10,003,580.80.
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news with regard to a publicly-traded company, we can expect to see positive movements in the value of the stock. Any time we see negative news, negative movement will likely follow. Given that insider buying is definitely positive news, we’re seeing strong movement on SCTY today. Currently (11:03), SCTY is trading at $18.39 per share after a gain of $1.01 per share or 5.79% so far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive movement out of SCTY. First and foremost, Elon Musk making such a large investment in the company shows that he believes that now is the time to buy. Aside from the fact that Musk made such a big investment into the company, there are other reasons to be excited about what we can expect to see from SCTY. Currently, there’s a big movement in sentiment with regard to energy. The world is becoming more aware of the fact that burning fossil fuels is bad for the environment. As a result, sentiment is changing, and entire countries are looking for ways to reduce reliance on fossil fuels. Products like solar and wind power are the power of the future, and this is likely to lead to gains for SCTY.
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What Do You Think?
Where do you think SCTY is headed and why? Let us know your opinion in the comments below!
[Image Courtesy of Flickr]