Have Entersoft S.A. (ATH:ENTER) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
June 09, 2021
ATSE:ENTER
Source: Shutterstock

We wouldn't blame Entersoft S.A. (ATH:ENTER) shareholders if they were a little worried about the fact that Pantelis Nikolopoulos, the Non-Executive Chairman recently netted about €875k selling shares at an average price of €3.50. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.9%.

Check out our latest analysis for Entersoft

Entersoft Insider Transactions Over The Last Year

In fact, the recent sale by Pantelis Nikolopoulos was the biggest sale of Entersoft shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of €3.61. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 3.9% of Pantelis Nikolopoulos's stake.

Over the last year we saw more insider selling of Entersoft shares, than buying. 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!

insider-trading-volume
ATSE:ENTER Insider Trading Volume June 10th 2021

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 Entersoft

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. We usually like to see fairly high levels of insider ownership. Entersoft insiders own 60% of the company, currently worth about €66m based on the recent share price. 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 Entersoft Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Entersoft is growing earnings. 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. While we like knowing 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. At Simply Wall St, we found 3 warning signs for Entersoft that deserve your attention before buying any shares.

Of course Entersoft may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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This article by Simply Wall St is general in nature. 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.
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