Don't Ignore The Insider Selling In Eni

We wouldn't blame Eni S.p.A. (BIT:ENI) shareholders if they were a little worried about the fact that Claudio Descalzi, the CEO, GM & Director recently netted about €1.1m selling shares at an average price of €15.81. However, that sale only accounted for 9.7% of their holding, so arguably it doesn't say much about their conviction.

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Eni Insider Transactions Over The Last Year

Notably, that recent sale by Claudio Descalzi is the biggest insider sale of Eni shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of €16.43. 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. We note that the biggest single sale was only 9.7% of Claudio Descalzi's holding.

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!

See our latest analysis for Eni

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Insider Ownership Of Eni

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Eni insiders own 0.02% of the company, worth about €11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Eni Insider Transactions Indicate?

An insider sold Eni shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Eni is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Eni has 2 warning signs 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.