Stock Analysis

With Enegex Up 24%, Insider Buyers Count Their Returns

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ASX:ENX
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Last week, Enegex Limited (ASX:ENX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 24% last week, resulting in a AU$1.8m increase in the company's market worth, implying a 73% gain on their initial purchase. As a result, their original purchase of AU$120.0k worth of stock is now worth AU$208.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Enegex

Enegex Insider Transactions Over The Last Year

The insider Ernest Albers made the biggest insider purchase in the last 12 months. That single transaction was for AU$120k worth of shares at a price of AU$0.015 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.026. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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
ASX:ENX Insider Trading Volume December 9th 2023

Enegex is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Enegex Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Enegex insiders own about AU$3.5m worth of shares. That equates to 37% 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 Does This Data Suggest About Enegex Insiders?

The fact that there have been no Enegex insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Enegex and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Enegex has 5 warning signs we think you should be aware of.

Of course Enegex 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 of direct interests only, but not derivative transactions or indirect interests.

Valuation is complex, but we're helping make it simple.

Find out whether Enegex is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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