Corporate insiders tend to have the most up-to-date information on their companies’ prospects. If they’re buying stock, it’s generally a positive development.
In this report, we are going to highlight some interesting insider buying at FuelCell Energy Inc (FCEL:US). FuelCell Energy is a fuel cell power company that designs and manufactures power plants that run on natural gas and biogas. It is listed on the NASDAQ Global Market and currently has a market capitalization of $7.0 billion.
FuelCell Energy Inc: Insider Buying
Form 4 filings show that on 25 January, FuelCell’s President and CEO Jason Few purchased 11,000 shares in the company. This purchase, which cost the insider $197,890, increased his holding from 11,134 shares to 22,134 shares.
This insider purchase stands out for a couple of reasons. Firstly, it is substantial both in nominal and relative terms. The fact that Few – who was appointed President and CEO in 2019 – has increased the size of his holding by almost 100% suggests he is confident about the future. Our Insider Model views the transaction as bullish.
Secondly, the insider has significant experience in the industry. Previously, Few served as President of Sustayn Analytics, a cloud-based software waste and recycling optimization company as well as President and Chief Executive Officer of Continuum Energy, an energy products and services company. Given his experience, he is likely to have a good read on his company’s prospects.
FuelCell posted an encouraging set of fourth quarter results recently.
For Q4, revenue came in at $17.0 million, 54% higher than the $11.0 million figure posted in the same quarter a year earlier. Adjusted EBITDA was $(8.6) million compared to $(11.0) million a year earlier. Meanwhile, for the full year, revenue was $70.9 million, up 17% year on year, while adjusted EBITDA was $(17.7) million compared to $(31.4) million a year earlier.
Looking ahead, management sounded confident about the future.
“We are developing compelling innovations in distributed hydrogen, long-duration storage and carbon capture that we believe will differentiate FuelCell Energy solutions from others in the marketplace and will enable end-users to meet sustainability goals,” said Mr Few. “We are firmly focused on delivering revenue growth as we strive to capture the significant market opportunities that we believe lay before us with our proprietary technologies,” he added
In light of FuelCell Energy’s recent progress, we see the insider buying here as bullish.