 Shares of Envela Corporation Common Stock Inc AMEX:ELA rose by 5 from the previous closing price. A Form 4 filing filed with the SEC on Monday, July 20 showed that CFO Pedersen Bret Allen bought 255 shares at an average price of 3.91. The transaction moved the executives stake in Envela Corporation Common Stock Inc. to 49,303 shares.Why Insider Transactions Are Important? While transactions from an insider shouldnt be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.Insiders buying stock after a notable sell off can indicate an insiders long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesnt feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to take some profit and lock in a gain.Transaction Codes To Focus On Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes besides P or S arent relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.See more from Benzinga Morning Market Stats in 5 Minutes Benzingas Top Upgrades, Downgrades For July 20, 2020 Return On Capital Employed Overview: GapC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 