Don't Ignore The Fact That This Insider Just Sold Some Shares In Elementos Limited (ASX:ELT)

Anyone interested in Elementos Limited (ASX:ELT) should probably be aware that a company insider, Mark Wellings, recently divested AU$239k worth of shares in the company, at an average price of AU$0.008 each. However, the silver lining is that the sale only reduced their total holding by 6.9%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Elementos

The Last 12 Months Of Insider Transactions At Elementos

Notably, that recent sale by Mark Wellings is the biggest insider sale of Elementos shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of AU$0.0075. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Elementos 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. Elementos insiders own about AU$6.3m worth of shares. That equates to 28% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Elementos Insiders?

An insider hasn't bought Elementos stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Elementos is showing 4 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.
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