Anyone interested in Enfusion, Inc. (NYSE:ENFN) should probably be aware that the Chief Operating Officer, Neal Pawar, recently divested US$191k worth of shares in the company, at an average price of US$9.92 each. The eyebrow raising move amounted to a reduction of 11% in their holding.

Enfusion Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Oleg Movchan, for US$1.0m worth of shares, at about US$10.01 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$10.13. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 8.0% of Oleg Movchan's holding.

In the last year Enfusion insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Enfusion Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Enfusion insiders own about US$102m worth of shares (which is 7.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Enfusion Insider Transactions Indicate?

Insiders sold Enfusion shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enfusion. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Enfusion.

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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.