Have Enghouse Systems Insiders Been Selling Stock?

Anyone interested in Enghouse Systems Limited (TSE:ENGH) should probably be aware that the Independent Director, Paul Stoyan, recently divested CA$216k worth of shares in the company, at an average price of CA$27.00 each. On the bright side, that sale was only 9.1% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Enghouse Systems

Enghouse Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Stephen Sadler, for CA$1.1m worth of shares, at about CA$37.34 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$27.53. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 12.11k shares for CA$344k. But insiders sold 66.10k shares worth CA$2.3m. In total, Enghouse Systems insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Enghouse Systems 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. Enghouse Systems insiders own about CA$264m worth of shares (which is 18% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Enghouse Systems Insiders?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Enghouse Systems insider transactions. 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. Every company has risks, and we've spotted 1 warning sign for Enghouse Systems you should know about.

But note: Enghouse Systems 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 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.