Have Insiders Sold Elementos Limited (ASX:ELT) Shares Recently?

Some Elementos Limited (ASX:ELT) shareholders may be a little concerned to see that insider Mark Wellings recently sold a substantial AU$660k worth of stock at a price of AU$0.013 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Elementos

Elementos Insider Transactions Over The Last Year

Notably, that recent sale by Mark Wellings is the biggest insider sale of Elementos shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.013. So it is hard to draw any strong conclusion from it.

Mark Wellings sold a total of 130.00m shares over the year at an average price of AU$0.01. 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!

I will like Elementos better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 28% of Elementos shares, worth about AU$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Elementos Insider Transactions Indicate?

An insider hasn't bought Elementos stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Elementos you should be aware of.

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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