Whilst it may not be a huge deal, we thought it was good to see that the Enhabit, Inc. (NYSE:EHAB) Independent Chairperson, Jeffrey Bolton, recently bought US$77k worth of stock, for US$7.72 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 13%.

Check out our latest analysis for Enhabit

The Last 12 Months Of Insider Transactions At Enhabit

In fact, the recent purchase by Independent Chairperson Jeffrey Bolton was not their only acquisition of Enhabit shares this year. Earlier in the year, they paid US$8.33 per share in a US$83k purchase. That means that an insider was happy to buy shares at above the current price of US$7.44. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 44.00k shares worth US$360k. But they sold 634.00 shares for US$5.6k. Overall, Enhabit insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Enhabit is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Enhabit Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Enhabit insiders own about US$9.8m worth of shares (which is 2.6% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Enhabit Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Enhabit insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Enhabit.

But note: Enhabit 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.