Insiders At ENN Energy Holdings Sold CN¥19m In Stock, Alluding To Potential Weakness

Many ENN Energy Holdings Limited (HKG:2688) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for ENN Energy Holdings

The Last 12 Months Of Insider Transactions At ENN Energy Holdings

The Executive Director, Dongzhi Wang, made the biggest insider sale in the last 12 months. That single transaction was for HK$10m worth of shares at a price of HK$113 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$50.40). So it may not shed much light on insider confidence at current levels.

In total, ENN Energy Holdings 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does ENN Energy Holdings 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. From what we can see in our data, insiders own only about HK$5.4m worth of ENN Energy Holdings shares. We might be missing something but that seems like very low insider ownership.

So What Do The ENN Energy Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded ENN Energy Holdings shares in the last quarter. Our analysis of ENN Energy Holdings insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. 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. For example - ENN Energy Holdings has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.