From what we can see, insiders were net sellers in Enterprise Financial Services Corp's (NASDAQ:EFSC ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Enterprise Financial Services
The Last 12 Months Of Insider Transactions At Enterprise Financial Services
The Independent Director, Richard Sanborn, made the biggest insider sale in the last 12 months. That single transaction was for US$4.1m worth of shares at a price of US$52.09 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$43.31. So it may not shed much light on insider confidence at current levels. Richard Sanborn was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 4.37k shares for US$202k. On the other hand they divested 128.64k shares, for US$6.8m. Richard Sanborn ditched 128.64k shares over the year. The average price per share was US$52.81. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At Enterprise Financial Services Have Sold Stock Recently
The last three months saw significant insider selling at Enterprise Financial Services. In total, Independent Director Richard Sanborn sold US$95k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Enterprise Financial Services 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Enterprise Financial Services insiders own about US$72m worth of shares. That equates to 4.4% of the company. 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 Does This Data Suggest About Enterprise Financial Services Insiders?
An insider sold Enterprise Financial Services shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Enterprise Financial Services is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enterprise Financial Services. For example - Enterprise Financial Services has 1 warning sign we think you should be aware of.
Of course Enterprise Financial Services 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.