Enteq Technologies' Stock Sinks To UK£0.015, But Insiders Sold Even Lower

Enteq Technologies Plc's (LON:NTQ) stock price has dropped 14% in the previous week, but insiders who sold US$220k in stock over the past year have had less luck. Given that the average selling price of US$0.023 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 6 warning signs about Enteq Technologies. View them for free.

The Last 12 Months Of Insider Transactions At Enteq Technologies

In the last twelve months, the biggest single sale by an insider was when the insider, William Black, sold UK£100k worth of shares at a price of UK£0.028 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£0.015. So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 7.02m shares worth UK£124k. But insiders sold 9.70m shares worth UK£220k. Over the last year we saw more insider selling of Enteq Technologies shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Enteq Technologies

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Insiders At Enteq Technologies Have Sold Stock Recently

There was substantially more insider selling, than buying, of Enteq Technologies shares over the last three months. We note insiders cashed in UK£220k worth of shares. On the flip side, insiders spent UK£124k on purchasing shares (as mentioned above) . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Enteq Technologies insiders own about UK£892k worth of shares (which is 57% 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 Do The Enteq Technologies Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Enteq Technologies stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for Enteq Technologies (5 can't be ignored!) that we believe deserve your full attention.

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.

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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.