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Don't Ignore The Fact That This Insider Just Sold Some Shares In Enbridge Inc. (TSE:ENB)

Simply Wall St

Investors may wish to note that an insider of Enbridge Inc., Bradley Shamla, recently netted CA$120k from selling stock, receiving an average price of CA$47.30. However we note that the sale only shrunk their holding by 4.6%.

See our latest analysis for Enbridge

The Last 12 Months Of Insider Transactions At Enbridge

The Executive VP and President of Gas Transmission & Midstream, William Yardley, made the biggest insider sale in the last 12 months. That single transaction was for CA$737k worth of shares at a price of CA$49.49 each. So what is clear is that an insider saw fit to sell at around the current price of CA$47.78. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 26369 shares worth CA$1.3m. On the other hand they divested 23951 shares, for CA$1.2m. In total, Enbridge insiders bought more than they sold over the last year. You can see the insider transactions (by 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!

TSX:ENB Recent Insider Trading, September 30th 2019

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).

Does Enbridge Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Enbridge insiders own about CA$194m worth of shares (which is 0.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Enbridge Tell Us?

The stark truth for Enbridge is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Enbridge may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.