Whilst it may not be a huge deal, we thought it was good to see that the Enerplus Corporation (TSE:ERF) Independent Director, Jeffrey Sheets, recently bought CA$53k worth of stock, for CA$8.82 per share. Even though that isn't a massive buy, it did increase their holding by 72%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Enerplus
Over the last year, we can see that the biggest insider sale was by the President, Ian Dundas, for CA$447k worth of shares, at about CA$11.23 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$8.80. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid CA$380k for 41.16k shares. But insiders sold 133265 shares worth CA$1.5m. In total, Enerplus insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Enerplus
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Based on our data, Enerplus insiders have about 0.2% of the stock, worth approximately CA$3.8m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Enerplus Tell Us?
It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Enerplus.
But note: Enerplus may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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