Insider Sellers Might Regret Selling enCore Energy Shares at a Lower Price Than Current Market Value

enCore Energy Corp.'s (CVE:EU) stock price has dropped 13% in the previous week, but insiders who sold US$1.6m in stock over the past year have had less luck. Given that the average selling price of US$5.83 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

enCore Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, William Harris, for CA$640k worth of shares, at about CA$6.41 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$1.66. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 247.00k shares worth CA$571k. But insiders sold 269.35k shares worth CA$1.6m. In total, enCore Energy insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for enCore Energy

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At enCore Energy Have Bought Stock Recently

Over the last quarter, enCore Energy insiders have spent a meaningful amount on shares. In total, insiders bought CA$566k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does enCore Energy Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests enCore Energy insiders own 2.2% of the company, worth about CA$6.8m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At enCore Energy 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. 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. In terms of investment risks, we've identified 2 warning signs with enCore Energy and understanding these should be part of your investment process.

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.

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.

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.