Enlitic Insider Ups Holding By 34% During Year

Insiders were net buyers of Enlitic, Inc.'s (ASX:ENL ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Enlitic

In the last twelve months, the biggest single purchase by an insider was when insider Alexander Waislitz bought AU$150k worth of shares at a price of AU$0.83 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.065). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Alexander Waislitz was the only individual insider to buy during 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.

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Enlitic insiders have about 3.3% of the stock, worth approximately AU$183k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Enlitic stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Enlitic has 4 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis.