Stock Analysis

The President of Enovix Corporation (NASDAQ:ENVX), Raj Talluri, Just Bought A Few More Shares

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NasdaqGS:ENVX
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Whilst it may not be a huge deal, we thought it was good to see that the Enovix Corporation (NASDAQ:ENVX) President, Raj Talluri, recently bought US$56k worth of stock, for US$11.22 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out 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$2.7m worth of shares at a price of US$8.86 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$10.25. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Enovix insiders bought shares during the last year, they didn't sell. 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
NasdaqGS:ENVX Insider Trading Volume March 16th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Enovix

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. It's great to see that Enovix insiders own 19% of the company, worth about US$306m. 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 Does This Data Suggest About Enovix Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Enovix. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Enovix (including 1 which is significant).

But note: Enovix may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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