EnSync Inc (NYSEMKT:ESNC) has experienced some insider buying from one of its major shareholders, He Jilun. The transaction took place on September 27 and 28, with Mr. Jilun buying well over 1.3 million shares, at $0.94 per share. Following the announcement, the stock gained momentum and successfully added $0.26 in terms of its share value. Analysts believe that the buying is encouraged by the fact that ESNC has patented technology, which is not easy to replicate.
The company is the developer of a matrix energy management solution, which helps synchronize energy from a number of renewable and conventional sources. However, analysts point out two major red flags that investors should be wary off. First, ESNC’s per share revenue has been on the decline, on an average of 41.9% per annum. Secondly, EnSync reported a buildup of inventory, which could mean that it is finding it difficult to sell its goods.
Recently, EnSync announced the retirement of one of its CFO, Jim Schott, as of September 30, 2016. As such, the company has decided to shift the responsibilities of the CFO to the new CAO, Fred Vaske. It should be noted here that Mr. Vaske is currently the VP of structured finance, at the company. Brad Hansen, the CEO of ESNC, pointed out that the company had moved to the development and sale of power purchase agreement projects and it was fortunate to have someone like Mr. Vaske at this point. He was of the opinion that Mr. Vaske’s understanding of EnSync’s business and potential customers is crucial in the company’s transition.
Mr. Hansen also took this opportunity to reveal that they had successfully closed the first tranche of PPA projects. He expressed his confidence in the ability of Mr. Vaske in executing their sales strategy, for the foreseeable future. The CEO also lauded the efforts of Mr. Schott, in helping the company get to this point. He also claimed that Mr. Schott had been crucial in helping with the transition to the commercialization stages.
EnSync Inc (NYSEMKT:ESNC) had a trade volume of 2.01 million and gained 17.65% in terms of its share value, during the October 7 trading session, to close at $1.2 per share.
