We wouldn't blame EnerSys (NYSE:ENS) shareholders if they were a little worried about the fact that David Shaffer, the CEO, President & Director recently netted about US$1.8m selling shares at an average price of US$100. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.2%.

EnerSys Insider Transactions Over The Last Year

Notably, that recent sale by David Shaffer is the biggest insider sale of EnerSys shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$101). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.2% of David Shaffer's holding.

EnerSys insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does EnerSys Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that EnerSys insiders own 0.9% of the company, worth about US$39m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The EnerSys Insider Transactions Indicate?

Insiders haven't bought EnerSys stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since EnerSys is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. For example - EnerSys has 1 warning sign we think you should be aware of.

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.

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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.