We wouldn't blame e.l.f. Beauty, Inc. (NYSE:ELF) shareholders if they were a little worried about the fact that Tarang Amin, the Chairman recently netted about US$1.7m selling shares at an average price of US$17.10. However, that sale only accounted for 1.8% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At e.l.f. Beauty
In fact, the recent sale by Tarang Amin was the biggest sale of e.l.f. Beauty shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$17.70. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 1.8% of Tarang Amin's holding.
In the last twelve months insiders netted US$2.4m for 166564 shares sold. Insiders in e.l.f. Beauty didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like e.l.f. Beauty better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does e.l.f. Beauty 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that e.l.f. Beauty insiders own 13% of the company, worth about US$119m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At e.l.f. Beauty Tell Us?
Insiders sold e.l.f. Beauty shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.