With oil now commanding far more than $100 a barrel, solar technology companies are back in the headlines. Which one makes the most attractive buy now?
That's not an easy question to answer, but insider buying and selling can tell us a lot. With that in mind, here's a closer look at the insider action at three of America's top solar technology specialists: First Solar
Who's buying now?
|
Metric |
First Solar |
Evergreen Solar |
SunPower |
|---|---|---|---|
| CAPS stars (out of 5) | ** | ** | *** |
| Insider ownership | 31.96% | 0.80% | 0.91% |
| Net buying (selling) over the past year | ($196.6 million) | ($59,807) | $1.03 million |
| Last transaction | David Eaglesham Chief Tech. Officer 1,944 shares, $146.93 ea. March 4, 2011 Sold 75% of holdings |
Michael El Hillow President and CEO 660 shares, $1.27 each March 18, 2011 Sold < 1% of holdings |
Betsy Atkins Director 4,252 shares, $13.74 ea. Dec. 14, 2010 Sold 100% of holdings |
Sources: Motley Fool CAPS, Capital IQ, and Form 4 Oracle.
Looking at this table, I'd say First Solar has by far the worst insider profile, despite heavy insider ownership. Who cares how much executives own if most the decisions are sales?
To be fair, insiders have done most of their selling via 10b5-1 plans, which give them no control over the timing of transactions. And many of the open-market sales were conducted not by an insider, but a strategic owner: the estate of John T. Walton, son of Wal-Mart founder Sam Walton.
Evergreen gets a passing grade, since virtually all executive selling over the past year was done for the purpose of covering taxes on vested shares. In this sense, insiders are selling only what they have to, and nothing more. That's a good sign.
But SunPower gets the top grade among Fools. Smart. Twice since February, the stock has popped more than 10% in a day, and it's up 24% year to date versus a 4% gain for the S&P 500, validating my Foolish colleague Alyce Lomax's thesis for adding the stock to her Rising Stars portfolio in January.
With a 0.29 PEG ratio, I can see why she still likes the stock, and why, of the three stocks profiled above, only SunPower has attracted net buying interest among board members, executives, and strategic owners.
Do you agree? Disagree? Let us know which solar stock you'd buy using the comments box below. You can also rate any of these stocks in Motley Fool CAPS.
The Motley Fool recently introduced a free My Watchlist feature that allows users to stay ahead of the curve, receiving up-to-date news on companies like First Solar, Evergreen Solar, and SunPower. To get the latest updates and analysis on these and other stocks, add them to your watchlist today:
First Solar is a Motley Fool Rule Breakers recommendation. Our Motley Fool Inside Value, Motley Fool Global Gains, and Motley Fool Income Investor services have advised purchasing shares of Wal-Mart. Motley Fool Options has recommended creating a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days.
