Advertisement
Canada markets open in 5 minutes
  • S&P/TSX

    22,107.08
    +194.56 (+0.89%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CAD/USD

    0.7371
    -0.0001 (-0.02%)
     
  • CRUDE OIL

    82.49
    +1.14 (+1.40%)
     
  • Bitcoin CAD

    95,891.22
    -740.04 (-0.77%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,233.20
    +20.50 (+0.93%)
     
  • RUSSELL 2000

    2,114.35
    +44.19 (+2.13%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ futures

    18,507.25
    +3.50 (+0.02%)
     
  • VOLATILITY

    12.96
    +0.18 (+1.41%)
     
  • FTSE

    7,951.64
    +19.66 (+0.25%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6817
    +0.0012 (+0.18%)
     

Multiple insiders bought Elementis plc (LON:ELM) stock earlier this year, a positive sign for shareholders

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Elementis plc's (LON:ELM) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Elementis

The Last 12 Months Of Insider Transactions At Elementis

The Group CEO & Executive Director Paul Waterman made the biggest insider purchase in the last 12 months. That single transaction was for UK£71k worth of shares at a price of UK£0.95 each. So it's clear an insider wanted to buy, at around the current price, which is UK£1.00. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Elementis share holders is that insiders were buying at near the current price.

ADVERTISEMENT

While Elementis insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Elementis is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Elementis Insiders Bought Stock Recently

Over the last quarter, Elementis insiders have spent a meaningful amount on shares. Overall, two insiders shelled out UK£101k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Elementis Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Elementis insiders own 0.2% of the company, worth about UK£1.4m. We prefer to see high levels of insider ownership.

So What Do The Elementis Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Elementis insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Elementis has 1 warning sign we think you should be aware of.

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, but not derivative transactions.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here