We wouldn't blame Enphase Energy, Inc. (NASDAQ:ENPH) shareholders if they were a little worried about the fact that Steven Gomo, the Chairman & Lead Independent Director recently netted about US$4.8m selling shares at an average price of US$108.    That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.    

The Last 12 Months Of Insider Transactions At Enphase Energy

In fact, the recent sale by Steven Gomo was the biggest sale of Enphase Energy shares made by an insider individual in the last twelve months, according to our records.     That means that an insider was selling shares at  slightly  below the current price (US$114).  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.  However, while insider selling is sometimes discouraging, it's only a weak signal.   We note that the biggest single sale was only 33%of Steven Gomo's holding.    

In the last twelve months insiders purchased 41.72k shares for US$5.0m.  But insiders sold 46.79k shares worth US$5.2m.     In total, Enphase Energy insiders sold more than they bought over the last year.    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!

NasdaqGM:ENPH Insider Trading Volume May 5th 2024

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

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  I reckon it's a good sign if insiders own a significant number of shares in the company.   Enphase Energy insiders own 3.3% of the company, currently worth about US$516m 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.  

So What Do The Enphase Energy Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Enphase Energy stock, than buying, in the last three months.     Zooming out, the longer term picture doesn't give us much comfort.    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.      While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.     You'd be interested to know, that we found 1 warning sign for Enphase Energy and we suggest you have a look.  

But note: Enphase Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.