Chief Customer Officer of Service Providers Indranil Chatterjee Just Sold A Bunch Of Shares In Enea AB (publ) (STO:ENEA)

By
Simply Wall St
Published
July 24, 2021
OM:ENEA
Source: Shutterstock

Anyone interested in Enea AB (publ) (STO:ENEA) should probably be aware that the Chief Customer Officer of Service Providers, Indranil Chatterjee, recently divested kr3.2m worth of shares in the company, at an average price of kr231 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

See our latest analysis for Enea

Enea Insider Transactions Over The Last Year

In fact, the recent sale by Indranil Chatterjee was the biggest sale of Enea shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of kr228. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 4.94k shares worth kr801k. But insiders sold 37.42k shares worth kr8.5m. In total, Enea insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
OM:ENEA Insider Trading Volume July 24th 2021

I will like Enea better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Enea

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Enea insiders own 24% of the company, worth about kr1.2b. 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 Enea Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Enea stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Enea makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 - Enea has 1 warning sign we think you should be aware of.

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, but not derivative transactions.

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