Enovix Insiders Added US$5.5m Of Stock To Their Holdings

Multiple insiders secured a larger position in Enovix Corporation (NASDAQ:ENVX) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Enovix

Enovix Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Thurman Rodgers bought US$1.4m worth of shares at a price of US$10.47 per share. Even though the purchase was made at a significantly lower price than the recent price (US$18.63), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 510.00k shares for US$5.5m. But insiders sold 9.53k shares worth US$130k. In the last twelve months there was more buying than selling by Enovix insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Enovix Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Enovix. In total, Independent Director Betsy Atkins sold US$130k worth of shares in that time. Meanwhile President Raj Talluri bought US$50k worth. We don't view these transactions as a positive sign.

Does Enovix Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Enovix insiders own 17% of the company, worth about US$491m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Enovix Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Enovix stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Enovix and understanding them should be part of your investment process.

Of course Enovix 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. 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.