Insiders Now Seeing Red With ED At New 52-Week Low

In trading on Friday, shares of Consolidated Edison, Inc. (ED) touched a new 52-week low of $54.24/share. That's a $9.79 share price drop, or -15.29% decline from the 52-week high of $64.03 set back on 05/01/2013. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for ED that means the stock would have to gain 18.05% to get back to the 52-week high. For a move like that, Consolidated Edison, Inc. would need fundamental strength at the business level.

Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as ED shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, ED has seen 7 different instances of insiders buying over the past six months.

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Purchased Insider Title Shares Price/Share Value
06/30/2013 Craig S. Ivey President (CECONY) 62 $57.42 $3,572.67
06/30/2013 Gurudatta D. Nadkarni VP, Strategic Planning 77 $57.42 $4,393.78
06/30/2013 Robert N. Hoglund SVP & CFO 99 $57.42 $5,673.67
06/30/2013 Robert Muccilo VP & Chief Accounting Officer 76 $57.42 $4,373.11
07/31/2013 Elizabeth D. Moore SVP & General Counsel 38 $58.72 $2,221.96
07/31/2013 Craig S. Ivey President (CECONY) 38 $58.72 $2,221.96
07/31/2013 Robert N. Hoglund SVP & CFO 39 $58.72 $2,314.74
07/31/2013 Joseph P. Oates SVP, Business Shared Services 9 $58.72 $555.49
07/31/2013 Gurudatta D. Nadkarni VP, Strategic Planning 35 $58.72 $2,078.69
07/31/2013 Robert Muccilo VP & Chief Accounting Officer 34 $58.72 $2,000.00
08/31/2013 Gurudatta D. Nadkarni VP, Strategic Planning 36 $58.28 $2,078.85
08/31/2013 Robert Muccilo VP & Chief Accounting Officer 34 $58.28 $2,000.17
08/31/2013 Elizabeth D. Moore SVP & General Counsel 38 $58.28 $2,222.22
08/31/2013 Joseph P. Oates SVP, Business Shared Services 10 $58.28 $555.41
08/31/2013 Craig S. Ivey President (CECONY) 38 $58.28 $2,222.22
08/31/2013 Robert N. Hoglund SVP & CFO 40 $58.28 $2,314.88
09/30/2013 Gurudatta D. Nadkarni VP, Strategic Planning 81 $55.37 $4,492.17
09/30/2013 Craig S. Ivey President (CECONY) 66 $55.37 $3,666.05
09/30/2013 Robert N. Hoglund SVP & CFO 105 $55.37 $5,821.05
09/30/2013 Robert Muccilo VP & Chief Accounting Officer 81 $55.37 $4,470.57
10/31/2013 Craig S. Ivey President (CECONY) 40 $56.18 $2,222.48
10/31/2013 Robert Muccilo VP & Chief Accounting Officer 36 $56.18 $2,000.01
10/31/2013 Gurudatta D. Nadkarni VP, Strategic Planning 37 $56.18 $2,078.66
10/31/2013 Joseph P. Oates SVP, Business Shared Services 10 $56.18 $555.62
10/31/2013 Robert N. Hoglund SVP & CFO 41 $56.18 $2,314.62
10/31/2013 John McAvoy President & CEO, O&R 79 $56.18 $4,444.40
10/31/2013 Elizabeth D. Moore SVP & General Counsel 40 $56.18 $2,222.48
11/30/2013 Robert N. Hoglund SVP & CFO 40 $57.49 $2,314.55
11/30/2013 Craig S. Ivey President (CECONY) 39 $57.49 $2,221.99
11/30/2013 Elizabeth D. Moore SVP & General Counsel 39 $57.49 $2,221.99
11/30/2013 Robert Muccilo VP & Chief Accounting Officer 35 $57.49 $2,000.08
11/30/2013 Joseph P. Oates SVP, Business Shared Services 10 $57.49 $555.35
11/30/2013 Robert Muccilo VP & Chief Accounting Officer 35 $57.49 $2,000.08
11/30/2013 Joseph P. Oates SVP, Business Shared Services 10 $57.49 $555.35
11/30/2013 Gurudatta D. Nadkarni VP, Strategic Planning 36 $57.49 $2,078.84
11/30/2013 John McAvoy President 77 $57.49 $4,443.98

In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where ED has traded over the past year, with the 50-day and 200-day moving averages included.

Consolidated Edison, Inc. Moving Averages Chart

Time will tell whether the insider purchases foretell a future rebound for ED shares, which are presently showing a last trade of $54.29/share, slightly above the new 52-week low.

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