Jane Mowat is the Independent Director of Enghouse Systems Limited (TSE:ENGH) and they just acquired 16% more shares

While not a huge purchase, we think it was good to see that Jane Mowat, the independent director of Enghouse Systems Limited (TSE:ENGH) recently paid C$54,000 to buy shares, at C$44.87 per share. While we’re hesitant to get overly enthusiastic about a purchase of this size, we do note that it increased their stake by 16%.

Check out our latest analysis for Enghouse Systems

Enghouse Systems insider trading over the past year

In the past twelve months, the largest single insider sale occurred when Chairman and CEO Stephen Sadler sold C$3.5 million worth of shares at a price of C$62.50 per action. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. It is reassuring that this sale was made at a price well above the current share price of C$46.34. So this may not shed much light on insider confidence at current levels.

In the past twelve months, insiders have purchased 22,200 shares for C$442,000. But insiders sold 162,000 shares worth C$10 million. In total, Enghouse Systems insiders sold more than they bought over the past year. Sellers received a price of approximately CA$62.73 on average. It’s certainly not great to see insiders selling shares of the company. But the sale was at prices much higher than the current stock price (CA$46.34), so that probably doesn’t tell us much about the value on offer today. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

TSX:ENGH Insider Trading Volume January 15, 2022

If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).

Insider ownership of Enghouse Systems

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. High insider participation often makes company management more concerned with the interests of shareholders. Enghouse Systems insiders own 19% of the company, which is currently worth approximately C$481 million based on recent share price. I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.

What could insider trading at Enghouse Systems tell us?

Good to see recent purchases. But the same cannot be said for the transactions of the last 12 months. Recent buying by some insiders, along with strong insider ownership, suggests that Enghouse Systems insiders are quite aligned and optimistic. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Example: we have identified 1 warning sign for Enghouse Systems you should be aware.

Sure Enghouse Systems may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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