Whilst it may not be a huge deal, we thought it was good to see that the Ensurance Limited (ASX:ENA) Executive Chairman, Anthony Leibowitz, recently bought AU$100k worth of stock, for AU$0.015 per share. That might not be a big purchase but it only increased their holding by 6.0%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Ensurance
Notably, that recent purchase by Anthony Leibowitz is the biggest insider purchase of Ensurance shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.023. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Anthony Leibowitz bought 18.84m shares over the last 12 months at an average price of AU$0.021. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ensurance is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ensurance insiders own about AU$3.5m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Ensurance Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Ensurance insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Ensurance 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.
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