We'd be surprised if Enliven Therapeutics, Inc. (NASDAQ:ELVN) shareholders haven't noticed that the Independent Chairman, Richard Heyman, recently sold US$348k worth of stock at US$25.02 per share. However, the silver lining is that the sale only reduced their total holding by 7.4%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Enliven Therapeutics

Notably, that recent sale by Richard Heyman is the biggest insider sale of Enliven Therapeutics shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$25.75. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 7.4% of Richard Heyman's stake.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Enliven Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Enliven Therapeutics insiders own 3.9% of the company, worth about US$58m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Enliven Therapeutics Tell Us?

An insider sold Enliven Therapeutics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enliven Therapeutics. At Simply Wall St, we've found that Enliven Therapeutics has 6 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.