Elmore Insiders Still AU$177k Away From Original Investment Value

Insiders who purchased AU$252k worth of Elmore Limited (ASX:ELE) shares over the past year recouped some of their losses after price gained 14% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$177k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Elmore

Elmore Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Peter Diamond for AU$120k worth of shares, at about AU$0.03 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.008). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. Notably Peter Diamond was also the biggest seller.

In the last twelve months insiders purchased 9.33m shares for AU$252k. On the other hand they divested 4.85m shares, for AU$95k. In the last twelve months there was more buying than selling by Elmore insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Elmore Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Elmore insiders own 16% of the company, worth about AU$1.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Elmore Tell Us?

It doesn't really mean much that no insider has traded Elmore shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Elmore and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 6 warning signs for Elmore (4 shouldn't be ignored!) that we believe deserve your full attention.

But note: Elmore 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.