The Sparks Are Flying
According to a filing with the Securities and Exchange Commission, William Swanson -- a board member at NextEra Energy (NEE) -- purchased almost 7,200 shares of the company's stock on Oct. 26 at an average price of $69.53 per share. This purchase roughly doubled Swanson's direct holdings of NextEra Energy stock to a total of 14,400 shares. NextEra, formerly known as Florida Power & Light, is primarily an electric utility that generates electricity from several sources, including fossil fuels, nuclear and renewable. Swanson also serves as CEO of Raytheon (RTN).
We like to track insider purchases, so this investment of a half-million dollars has gotten our attention. Logically, insiders should be reluctant to invest more money in the company, since a sizable portion of these folks' future incomes are generally tied to it already -- so it would be rational for an individual to diversify their market exposure. In theory, then, insider buying should be a particularly bullish sign, as it shows these insiders are very confident in the company's prospects. In fact, studies have shown this to be the case....411 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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