Could This ESG Gem Be Running Out of Steam?

The Environmental, Social and Governance (ESG) movement has truly gripped investors, and share prices of companies operating in this space have generally outperformed the broader market in recent years, irrespective of the most recent market crash we’ve seen.

Questions about just how long the runway really is for the ESG movement may now be moot, considering all stocks have sold off in March, one of the worst months on record for North American stock markets.

That being said, approximately one year ago, prior to the massive run-up and then recently the selloff we all experienced, the found of Northland Power (TSX:NPI) announced the sale of a significant chunk of stock, much to the chagrin of the overall investor base.

The company has not necessarily devoted itself to maintaining continued levels of dividend increases (which is good, because in this market most companies are cutting dividends), but has rather focused on building out new renewable power generation projects, the key driver underpinning Northland’s success.

Whether Northland will snap back quicker than its peers a year from now remains to be seen, but investors who are keen on ESG and looking for bargains may finally have one.

As always, please contact a certified financial advisor before making any investing decisions; whether insiders in a particular company buy or sell their stock is not in any way indicative of the future stock price movement of any company.

Insiders sell stock for a wide range of reasons, many of which have nothing to do with future expectations of performance. The purpose of this article is to provide readers with information from which investing decisions can be made in conjunction with the assessment of company fundamentals and future cash flow projections.

Invest wisely, my friends.