Over the last year, a good number of insiders have significantly increased their holdings in Enovix Corporation (NASDAQ:ENVX). 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.
Enovix Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Thurman Rodgers for US$1.4m worth of shares, at about US$10.47 per share. We do like to see buying, but this purchase was made at well below the current price of US$13.78. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$5.5m for 511.43k shares. But they sold 45.53k shares for US$715k. In the last twelve months there was more buying than selling by Enovix insiders. You can see a visual depiction of insider transactions (by companies and 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!
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).
Insiders At Enovix Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Enovix. We note Independent Director Betsy Atkins cashed in US$653k worth of shares. On the other hand we note President Raj Talluri bought US$20k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Enovix insiders own 16% of the company, worth about US$363m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Enovix Insiders?
The insider sales have outweighed the insider buying, at Enovix, in the last three months. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. 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. Every company has risks, and we've spotted 4 warning signs for Enovix you should know about.
Of course Enovix 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.
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.