On July 15, 2025, Vera de Gyarfas, General Counsel of NextDecade (NEXT -1.57%), reported selling 44,366 shares of the company for $477,821.82, reducing her holdings to 801,050 shares.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 44,366 shares |
| Transaction value | $478,000 |
| Post-transaction shares | 801,050 shares |
| Post-transaction value | $9.6 million as of July 15, 2025 |
| YTD stock performance | 45.8% |
Note: Transaction occurred on July 11, 2025. Transaction value is as of July 15. Year-to-date (YTD) performance as of July 24.
Key questions
What is the stated purpose of the transaction?
The filing describes the sale as related to payment of exercise price or tax liability using securities, indicating non-discretionary motivation rather than portfolio rebalancing or directional signaling.
What is the significance of the transaction relative to current holdings?
Post-sale, the insider retains 801,050 shares, representing approximately 0.31% of outstanding shares, with remaining holdings valued at approximately $9.6 million as of July 15, 2025, suggesting continued material exposure.
How does market context frame this transaction?
Shares were priced at $10.77 in the transaction, which is approximately 4.4% below the current price of $11.24 as of July 24, 2025.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $2.93 billion |
| Employees | 237 |
| Net income (TTM) | ($179 million) |
| One-year stock price change | 38.1% |
Note: Trailing 12-month data as of March 31, 2025. Price change and market cap are as of July 24.
Company snapshot
- Develops liquefied natural gas (LNG) export terminals and carbon capture and storage (CCS) projects, with primary focus on the Rio Grande LNG facility in Texas.
- Operates a project-driven business model, generating revenue through the development and sale of LNG and offering carbon capture solutions to industrial partners.
- Serves global LNG buyers and industrial customers seeking decarbonization solutions.
NextDecade specializes in developing LNG export and carbon capture projects. The company’s strategy centers on developing large-scale facilities that serve the growing global demand for LNG and emissions reduction.
Foolish take
Not many have heard of NextDecade. But those who know and have owned shares in recent years must be making huge returns today. NextDecade stock, after all, has surged a jaw-dropping 511% in just the past five years.
NextDecade's stunning rally, however, has little to do with its general counsel's share sale, as the trade was non-discretionary. That means since the insider sold shares under a specific financial obligation and not voluntarily, it should not be construed as a bearish signal for the company.
To be sure, NextDecade stock plunged in 2017, soon after going public via a SPAC merger, after hitting regulatory hurdles for its first LNG Project, Rio Grande near Brownsville, Texas. The COVID-19 pandemic hit the LNG market further. NextDecade stock's journey since, however, is nothing short of spectacular.
At Rio Grande, eight liquefaction trains with nearly 48 million tonnes per annum of LNG capacity are currently under construction under turnkey contracts. Importantly, NextDecade has already struck several long-term LNG sales and purchase agreements, ranging between 15 and 20 years, with some of the largest energy companies. Notable names include ExxonMobil, Total Energies, and Shell. TotalEnergies is also an investor in NextDecade. NextDecade expects to begin operations at Rio Grande in 2027.
These developments have sent NextDecade stock soaring, especially with a projected boom in global demand for LNG in the coming years. That said, it's important to remember that NextDecade is still years away from generating its first revenue. The stock, however, is already commanding a market cap of over $3 billion as of this writing.
Glossary
- Insider: A company executive, director, or major shareholder with access to non-public company information.
- Form 4: A required SEC filing disclosing insider trades of company securities.
- Exercise price: The price at which an employee can buy shares through stock options.
- Tax liability: The total amount of tax owed to authorities based on income or transactions.
- Non-discretionary motivation: A transaction made due to obligations, not personal investment choice or market view.
- Directional signaling: An insider trade intended to indicate confidence or concern about the company’s future performance.
- Outstanding shares: Total shares of a company currently held by all shareholders, including insiders and the public.
- YTD Performance: The investment’s return from the start of the calendar year to the present date.
- TTM: The 12-month period ending with the most recent quarterly report.
- Carbon capture and storage (CCS): Technology that captures and stores carbon dioxide emissions to reduce environmental impact.
- LNG (liquefied natural gas): Natural gas cooled to a liquid state for easier storage and transport.
