Have Insiders Sold Enphase Energy Shares Recently?

We wouldn't blame Enphase Energy, Inc. (NASDAQ:ENPH) shareholders if they were a little worried about the fact that Thurman Rodgers, the Independent Director recently netted about US$6.1m selling shares at an average price of US$61.26. However, that sale only accounted for 4.8% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Enphase Energy

The Last 12 Months Of Insider Transactions At Enphase Energy

In fact, the recent sale by Independent Director Thurman Rodgers was not their only sale of Enphase Energy shares this year. Earlier in the year, they fetched US$130 per share in a -US$41m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$60.83). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 14.00k shares for US$1.0m. But they sold 469.71k shares for US$52m. Over the last year we saw more insider selling of Enphase Energy shares, than buying. They sold for an average price of about US$111. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$60.83. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Enphase Energy Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Enphase Energy insiders own about US$262m worth of shares (which is 3.1% of the company). 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?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. 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 Enphase Energy. At Simply Wall St, we found 2 warning signs for Enphase Energy that deserve your attention before buying any shares.

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 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.