Corporate insiders have access to real-time company information and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at NextEra Energy Inc (NEE:US). NextEra Energy is an American clean energy company. Operating through a number of subsidiaries including Florida Power & Light Company and NextEra Energy Resources, it provides renewable energy to millions of customers across the US. The company is listed on the New York Stock Exchange and currently has a market cap of around $137.3 billion.
2iQ data shows that on August 15, board member James Camaren purchased 4,000 NEE shares at a price of $67.85 per share. This trade cost the insider $271,400. Following that on August 17, another board member Kirk Hachigian purchased 10,000 NEE shares at a price of $67.95 per share. This trade cost the insider $679,500.
Mr. Camaren – who today is a private investor – has considerable experience in the utilities industry. Previously, he was Chairman and CEO of Utilities, Inc. which was one of the largest investor-owned water utilities in the US until March 2002 when it was acquired by Dutch company Nuon. He has been a director of NextEra Energy since 2002, so he is likely to know the company well.
NextEra Energy recently posted a solid set of Q2 results.
On an adjusted basis, Q2 earnings came in at $1,777 million, or $0.88 per share. These figures were comfortably above the figures of $1,593 million and $0.81 per share posted for the second quarter of 2022.
"NextEra Energy continued its solid execution with adjusted earnings per share growth of approximately 8.6% for the second quarter and 11% for the first half of the year," commented Chairman, President, and CEO John Ketchum.
Looking ahead, the company said that it continues to expect solid growth in the next few years. It added that it expects to raise its dividend by 10% per year through at least 2024.
“Due to our continued strong execution and visible earnings growth across both businesses, we remain confident in our long- term growth prospects. We will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2026 while at the same time maintaining our strong balance sheet and credit ratings," said Mr. Ketchum.
In light of this outlook, we see the insider buying here as a bullish development.