Insiders At Enfusion Sold US$24m In Stock, Alluding To Potential Weakness

Simply Wall St · 4d ago

Many Enfusion, Inc. (NYSE:ENFN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Enfusion

The Last 12 Months Of Insider Transactions At Enfusion

The insider, Tarek Hammoud, made the biggest insider sale in the last 12 months. That single transaction was for US$11m worth of shares at a price of US$10.70 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$9.05. So it is hard to draw any strong conclusion from it.

In the last year Enfusion insiders didn't buy any company stock. 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!

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NYSE:ENFN Insider Trading Volume May 13th 2024

I will like Enfusion better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Have Enfusion Insiders Traded Recently?

In the last three months company insiders divested US$1.2k worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership Of Enfusion

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Enfusion insiders own 14% of the company, currently worth about US$159m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Enfusion Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Enfusion insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Enfusion and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.