Yahoo Finance Enphase Energy Insiders Added US$5.00m Of Stock To Their Holdings
Over the last year, a good number of insiders have significantly increased their holdings in Enphase Energy, Inc. (NASDAQ:ENPH). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Enphase Energy
Enphase Energy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman & Lead Independent Director, Steven Gomo, for US$4.8m worth of shares, at about US$111 per share. That means that even when the share price was below the current price of US$126, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 33% of Steven Gomo's holding. Steven Gomo was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 41.72k shares for US$5.0m. But they sold 45.00k shares for US$4.8m. In total, Enphase Energy insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Enphase Energy Have Sold Stock Recently
We've seen more insider selling than insider buying at Enphase Energy recently. In total, Chairman & Lead Independent Director Steven Gomo sold US$4.8m worth of shares in that time. On the other hand we note EVP & CFO Mandy Yang bought US$417k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Enphase Energy insiders own 3.3% of the company, worth about US$586m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Enphase Energy Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Enphase Energy stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enphase Energy. Case in point: We've spotted 1 warning sign for Enphase Energy you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
