Trade Alert: Independent Director Of Element Fleet Management G. Graham Has Sold Stock

We'd be surprised if Element Fleet Management Corp. (TSE:EFN) shareholders haven't noticed that the Independent Director, G. Graham, recently sold CA$618k worth of stock at CA$24.70 per share. The eyebrow raising move amounted to a reduction of 33% in their holding.

View our latest analysis for Element Fleet Management

Element Fleet Management Insider Transactions Over The Last Year

The CEO, President & Director Laura Dottori-Attanasio made the biggest insider purchase in the last 12 months. That single transaction was for CA$744k worth of shares at a price of CA$20.07 each. We do like to see buying, but this purchase was made at well below the current price of CA$24.56. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 147.45k shares for CA$3.0m. But they sold 56.72k shares for CA$1.3m. In total, Element Fleet Management insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership Of Element Fleet Management

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Element Fleet Management insiders own about CA$14m worth of shares. That equates to 0.1% of the company. 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 Element Fleet Management Tell Us?

The stark truth for Element Fleet Management is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. 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. Our analysis shows 3 warning signs for Element Fleet Management (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.

But note: Element Fleet Management 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 of direct interests only, but not derivative transactions or indirect interests.

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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.