Independent Chairperson of Enhabit Jeffrey Bolton Buys 13% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Enhabit, Inc. (NYSE:EHAB) Independent Chairperson, Jeffrey Bolton, recently bought US$77k worth of stock, for US$7.72 per share. That purchase might not be huge but it did increase their holding by 13%.

View our latest analysis for Enhabit

The Last 12 Months Of Insider Transactions At Enhabit

In fact, the recent purchase by Independent Chairperson Jeffrey Bolton was not their only acquisition of Enhabit shares this year. They previously made an even bigger purchase of US$83k worth of shares at a price of US$8.33 per share. That means that even when the share price was higher than US$7.44 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$360k for 44.00k shares. On the other hand they divested 634.00 shares, for US$5.6k. In total, Enhabit insiders bought more than they sold 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!

Enhabit is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Enhabit

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. Insiders own 2.6% of Enhabit shares, worth about US$9.8m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Enhabit Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Enhabit insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Enhabit.

But note: Enhabit 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 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.