Why Are Top Entergy Executives Selling Their Own Stock?
April 16, 2014
1:24 PM
CONTACT: Nuclear Information and Resource Service (NIRS)
Michael Mariotte/Tim Judson
301-270-6477; 301-325-8014
Why Are Top Entergy Executives Selling Their Own Stock?
WASHINGTON - April 16 - Tuesday, GreenWorldbroke the story of a recent pattern of stock sales by top executives at Entergy, the nation’s second-largest operator of nuclear power stations. The CEO, CFO, Chief Accounting Officer, and Senior VPs for Government Affairs and Human Resources have all sold large amounts of their stock in Entergy, with CEO Leo Denault unloading over 55% of his shares in December and CAO Alyson Mount selling 46% of hers on April 9.
CFO Andrew Marsh and SVP for Government Affairs Kimberly Despeaux each sold over 20% of their Entergy stock in February. The insiders’ apparent lack of confidence in the corporation’s prospects contradicts a rosy 1st Quarter earnings report, also released yesterday, reporting higher than expected returns following an unexpectedly cold winter with unusual energy price spikes.
Over the last year, several investment firms have reported on major problems confronting Entergy’s nuclear power business, due to a long-term decline in energy prices that puts nuclear generators at a competitive disadvantage. Several reactors could close due to their poor economics over the next few years, including a majority of Entergy’s nuclear fleet. This winter’s price spikes do not necessarily change the long-term outlook for the nuclear industry, as utility and energy market regulators respond to mitigate those problems. The stock sales from Entergy executives indicate insiders may have even less confidence than industry analysts in the company’s prospects. And since Entergy’s nuclear business is the most significant known problem for the corporation, the executives’ moves raise questions about whether investors should expect larger problems or major announcements this year.
The article, written by Tim Judson, Acting Executive Director of Nuclear Information and Resource Service, is available here.
"This is typical of the kind of reporting and analysis GreenWorld was designed to provide," said Michael Mariotte, editor of GreenWorld and President of NIRS. "The mission of GreenWorld is to chronicle the transition--now in its beginning stages--to a nuclear-free, carbon-free energy system, and to provide news, analysis and occasional random musings on issues affecting nuclear power and clean energy worldwide."
More:
https://www.commondreams.org/newswire/2014/04/16-1
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