Multiple insiders bought Elevate Credit, Inc. (NYSE:ELVT) stock earlier this year, a positive sign for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Elevate Credit, Inc. (NYSE:ELVT), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Elevate Credit
Elevate Credit Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Strategy Officer Christopher Lutes bought US$100k worth of shares at a price of US$2.42 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.04). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Elevate Credit insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Elevate Credit 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.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Elevate Credit insiders own about US$4.4m worth of shares (which is 14% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Elevate Credit Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Elevate Credit shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Elevate Credit insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Elevate Credit. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Elevate Credit.
But note: Elevate Credit may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.
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