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How Much Are Endurance International Group Holdings, Inc. (NASDAQ:EIGI) Insiders Taking Off The Table?

Cole Patterson

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Endurance International Group Holdings, Inc. (NASDAQ:EIGI).

What Is Insider Selling?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

Check out our latest analysis for Endurance International Group Holdings

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Endurance International Group Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when Chief Marketing Officer John Orlando sold US$575k worth of shares at a price of US$8.56 per share. So what is clear is that an insider saw fit to sell at around the current price of US$7.29. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. John Orlando was the only individual insider to sell shares in the last twelve months.

John Orlando divested 69.91k shares over the last 12 months at an average price of US$8.56. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:EIGI Insider Trading January 15th 19
NasdaqGS:EIGI Insider Trading January 15th 19

I will like Endurance International Group Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Endurance International Group Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Endurance International Group Holdings insiders own about US$82m worth of shares. That equates to 8.2% 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 Endurance International Group Holdings Insider Transactions Indicate?

We note a that there’s been a little more insider selling than buying, recently. But the difference isn’t enough to have us worried. Recent insider selling makes us a little nervous, in light of the broader picture of Endurance International Group Holdings insider transactions. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Endurance International Group Holdings, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.