This Insider Has Just Sold Shares In enCore Energy

We'd be surprised if enCore Energy Corp. (CVE:EU) shareholders haven't noticed that the Independent Director, William Harris, recently sold CA$380k worth of stock at CA$4.75 per share. That sale was 22% of their holding, so it does make us raise an eyebrow.

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enCore Energy Insider Transactions Over The Last Year

Notably, that recent sale by William Harris is the biggest insider sale of enCore Energy shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$4.77, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 22% of William Harris's stake.

In the last twelve months insiders purchased 346.00k shares for CA$736k. But insiders sold 166.58k shares worth CA$802k. All up, insiders sold more shares in enCore Energy than they bought, over the last year. The sellers received a price of around US$4.82, on average. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for enCore Energy

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.4% of enCore Energy shares, worth about CA$22m. 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 enCore Energy Insider Transactions Indicate?

Insiders sold enCore Energy shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of enCore Energy.

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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.

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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.