Some Enact Holdings, Inc. (NASDAQ:ACT) shareholders may be a little concerned to see that the EVP & COO, Brian Gould, recently sold a substantial US$947k worth of stock at a price of US$41.18 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.

The Last 12 Months Of Insider Transactions At Enact Holdings

The President, Rohit Gupta, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$38.18 each. That means that even when the share price was below the current price of US$40.95, an insider wanted to cash in some shares. 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. This single sale was just 8.2% of Rohit Gupta's stake.

In the last year Enact Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. Enact Holdings insiders own about US$34m worth of shares. That equates to 0.6% of the company. 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 Enact Holdings Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Enact Holdings makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enact Holdings. While conducting our analysis, we found that Enact Holdings has 2 warning signs and it would be unwise to ignore them.

But note: Enact Holdings 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.

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.