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Bullish insiders at Enterprise Group, Inc. (TSE:E) loaded up on CA$681k of stock earlier this year

·3 min read

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Enterprise Group, Inc. (TSE:E), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Enterprise Group

Enterprise Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Brian Nilsson bought CA$316k worth of shares at a price of CA$0.25 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.37. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 2.54m shares worth CA$681k. On the other hand they divested 317.00k shares, for CA$125k. Overall, Enterprise Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Enterprise Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Enterprise Group. Specifically, insiders ditched CA$125k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership of Enterprise Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Enterprise Group insiders own 59% of the company, worth about CA$10m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Enterprise Group Tell Us?

Insiders haven't bought Enterprise Group stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're not too bothered by recent selling. 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. Case in point: We've spotted 2 warning signs for Enterprise Group you should be aware of.

But note: Enterprise Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.