Potential Elementis plc (LON:ELM) shareholders may wish to note that the Group Chief Executive Officer & Executive Director, Paul Waterman, recently bought UK£96k worth of stock, paying UK£0.48 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 38%.
The Last 12 Months Of Insider Transactions At Elementis
Notably, that recent purchase by Paul Waterman is the biggest insider purchase of Elementis shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£0.51. 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.
While Elementis insiders bought shares last year, they didn't sell. The average buy price was around UK£0.56. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by 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!
Elementis is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our information indicates that Elementis insiders own about UK£406k worth of shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Elementis Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Elementis.
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.
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