Insiders who bought US$507.8k worth of Enhabit, Inc. (NYSE:EHAB) stock in the last year have seen some of their losses recouped as the stock gained 17% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$148k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Enhabit
The Last 12 Months Of Insider Transactions At Enhabit
Over the last year, we can see that the biggest insider purchase was by Independent Director Gregory Rush for US$127k worth of shares, at about US$12.69 per share. That means that an insider was happy to buy shares at above the current price of US$8.67. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Enhabit insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Enhabit is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. Insiders own 2.1% of Enhabit shares, worth about US$9.2m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Enhabit Insiders?
The fact that there have been no Enhabit insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Enhabit insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enhabit. For example, Enhabit has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
But note: Enhabit 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
