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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Elementis plc's (LON:ELM) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Elementis
Elementis Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Group CEO & Executive Director Paul Waterman bought UK£71k worth of shares at a price of UK£0.95 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£1.26), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Elementis insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Elementis is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Elementis Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Elementis. Independent Non-Executive Director Steve Good purchased UK£23k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Elementis 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. Based on our data, Elementis insiders have about 0.3% of the stock, worth approximately UK£2.1m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Elementis Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Elementis stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Elementis and understanding it should be part of your investment process.