Badrinarayanan Kothandaraman Spends US$309k On Enphase Energy Stock

Investors who take an interest in Enphase Energy, Inc. (NASDAQ:ENPH) should definitely note that the President, Badrinarayanan Kothandaraman, recently paid US$30.93 per share to buy US$309k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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The Last 12 Months Of Insider Transactions At Enphase Energy

The Independent Director, Thurman Rodgers, made the biggest insider sale in the last 12 months. That single transaction was for US$6.1m worth of shares at a price of US$61.26 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$30.22. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Enphase Energy than they bought, over the last year. They sold for an average price of about US$61.28. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$30.22. 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!

View our latest analysis for Enphase Energy

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Insider Ownership

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. Enphase Energy insiders own about US$125m worth of shares (which is 3.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Enphase Energy Insiders?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. While it's good to be aware of 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Enphase Energy.

But note: Enphase Energy 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.