Potential Enviri Corporation (NYSE:NVRI) shareholders may wish to note that the Senior VP, Russell Hochman, recently bought US$252k worth of stock, paying US$6.27 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 50%, potentially signalling some real optimism.
Check out our latest analysis for Enviri
Over the last year, we can see that the biggest insider sale was by the Independent Lead Director, David Everitt, for US$361k worth of shares, at about US$7.02 per share. That means that an insider was selling shares at around the current price of US$6.87. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was David Everitt.
In the last twelve months insiders purchased 140.72k shares for US$938k. On the other hand they divested 51.42k shares, for US$361k. In total, Enviri insiders bought more than they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.8% of Enviri shares, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Enviri we think they are probably pretty confident of a bright future. While it's good to be aware of 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. For example - Enviri 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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