Top-level insiders such as CEOs and Chairmen tend to have an excellent understanding of their companies’ operating activities. If they’re buying company stock, it’s often a sign that the outlook for the business, and the share price, is attractive.
In this report, we are going to highlight a large CEO stock purchase 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 $150.07 billion.
Large CEO Purchase
Our data shows that on June 14, NextEra’s President, Chairman, and CEO John Ketchum purchased 13,600 NEE shares at an average price of $74.26 per share.
This trade, which was made through a 10b5-1 trading plan, cost the insider approximately $1.01 million, and increased his holding to 184,485 shares.
Mr. Ketchum has considerable company experience. He joined NextEra Energy in 2002 and since then, he has served in a broad range of roles at NextEra Energy, NextEra Energy Resources, and NextEra Energy Partners, LP. He became President and CEO in March 2022 and Chairman in July 2022. Given his background, he is likely to have a good understanding of his company’s prospects.
It’s worth noting that Mr. Ketchum is not the only insider to have bought stock here recently. Back in February, we noted that five other insiders, including CFO Kirk Crews, had purchased shares.
NextEra Energy recently posted strong results for the first quarter of 2023.
On an adjusted basis, Q1 earnings were $1,678 million, or $0.84 per share, compared to $1,455 million, or $0.74 per share, a year earlier.
"Following a year of strong financial results, NextEra Energy is off to a solid start in 2023, delivering strong first-quarter adjusted earnings per share growth of approximately 13.5% year-over-year,” commented Mr. Ketchum.
Looking ahead, management was confident about the future.
“We remain confident in NextEra Energy's long-term growth prospects and 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 these results, and the encouraging outlook, we see the insider buying here as a bullish development.