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Have Insiders Been Buying Element 25 Limited (ASX:E25) Shares This Year?

Simply Wall St
·3 mins read

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Element 25 Limited (ASX:E25).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Element 25

The Last 12 Months Of Insider Transactions At Element 25

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Seamus Cornelius bought AU$690k worth of shares at a price of AU$0.43 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.77. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Seamus Cornelius bought a total of 2.99m shares over the year at an average price of AU$0.42. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!


Element 25 is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Element 25 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. Insiders own 18% of Element 25 shares, worth about AU$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Element 25 Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Element 25 and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Element 25. Be aware that Element 25 is showing 5 warning signs in our investment analysis, and 2 of those are significant...

Of course Element 25 may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.