Some Enphase Energy, Inc. (NASDAQ:ENPH) shareholders may be a little concerned to see that the Executive VP & Chief Commercial Officer, David Ranhoff, recently sold a substantial US$16m worth of stock at a price of US$244 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
Enphase Energy Insider Transactions Over The Last Year
Notably, that recent sale by David Ranhoff is the biggest insider sale of Enphase Energy shares that we've seen in the last year. That means that even when the share price was below the current price of US$251, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was 100% of David Ranhoff's stake.
Enphase Energy insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Enphase Energy
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Enphase Energy insiders own 2.0% of the company, worth about US$679m. 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 Do The Enphase Energy Insider Transactions Indicate?
Insiders haven't bought Enphase Energy stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. While conducting our analysis, we found that Enphase Energy has 5 warning signs and it would be unwise to ignore these.
Of course Enphase Energy 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.
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.
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