NYSE:ENLC), you may well want to know whether insiders have been buying or selling.” data-reactid=”28″>We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell EnLink Midstream, LLC (NYSE:ENLC), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″>Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
Check out our latest analysis for EnLink Midstream ” data-reactid=”36″> Check out our latest analysis for EnLink Midstream
The Last 12 Months Of Insider Transactions At EnLink Midstream
In the last twelve months, the biggest single purchase by an insider was when Independent Director of EnLink Midstream Manager LLC Kyle Vann bought US$119k worth of shares at a price of US$2.98 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$2.87). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Kyle Vann was the only individual insider to buy during the last year.
Kyle Vann bought a total of 50.00k shares over the year at an average price of US$3.36. 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!
list of companies. (Hint: insiders have been buying them).” data-reactid=”52″>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 EnLink Midstream
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that EnLink Midstream insiders own 1.0% of the company, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The EnLink Midstream Insider Transactions Indicate?
EnLink Midstream is showing 3 warning signs in our investment analysis, and 1 of those shouldn’t be ignored…” data-reactid=”56″>The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in EnLink Midstream shares, given these transactions (along with notable insider ownership 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 EnLink Midstream is showing 3 warning signs in our investment analysis, and 1 of those shouldn’t be ignored…
list of interesting companies, that have HIGH return on equity and low debt.” data-reactid=”61″>If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”63″>This article by Simply Wall St is general in nature. 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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