We'd be surprised if Enviri Corporation (NYSE:NVRI) shareholders haven't noticed that the Independent Lead Director, David Everitt, recently sold US$361k worth of stock at US$7.02 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

Enviri Insider Transactions Over The Last Year

In fact, the recent sale by David Everitt was the biggest sale of Enviri shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$7.03). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of David Everitt's holding.

In the last twelve months insiders purchased 60.30k shares for US$437k. But insiders sold 51.42k shares worth US$361k. In the last twelve months there was more buying than selling by Enviri insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Enviri insiders own 2.2% of the company, worth about US$12m. 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 Do The Enviri Insider Transactions Indicate?

The stark truth for Enviri is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Enviri has 2 warning signs 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.