- United States
- Household Products
Insiders are probably glad they sold their shares in Energizer Holdings, Inc. (NYSE:ENR) after 4.0% drop
By selling US$189k worth of Energizer Holdings, Inc. (NYSE:ENR) stock at an average sell price of US$32.21 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by US$95m after the stock price dropped 4.0% over the past week, but insiders were spared from painful losses.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Energizer Holdings
Energizer Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Bill Armstrong, sold US$161k worth of shares at a price of US$32.14 per share. That means that an insider was selling shares at below the current price (US$32.20). 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. It is worth noting that this sale was only 17% of Bill Armstrong's holding.
Over the last year we saw more insider selling of Energizer Holdings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Energizer Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Energizer Holdings insiders own 0.5% of the company, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Energizer Holdings Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Energizer Holdings insiders. But we do like the fact that insiders own a fair chunk of the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Energizer Holdings is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
But note: Energizer Holdings 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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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.
Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide.
Undervalued with reasonable growth potential.