Don't Ignore The Insider Selling In Elixirr International

Some Elixirr International plc (LON:ELIX) shareholders may be a little concerned to see that the Founder, Stephen Newton, recently sold a substantial UK£2.0m worth of stock at a price of UK£7.40 per share. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Elixirr International

The Last 12 Months Of Insider Transactions At Elixirr International

Notably, that recent sale by Founder Stephen Newton was not the only time they sold Elixirr International shares this year. They previously made an even bigger sale of -UK£10m worth of shares at a price of UK£6.50 per share. That means that even when the share price was below the current price of UK£7.36, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 12% of Stephen Newton's holding.

All up, insiders sold more shares in Elixirr International than they bought, over the last year. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Elixirr International Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Elixirr International insiders own about UK£139m worth of shares (which is 40% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Elixirr International Insiders?

The stark truth for Elixirr International is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Elixirr International makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Elixirr International. At Simply Wall St, we found 1 warning sign for Elixirr International that deserve your attention before buying any shares.

Of course Elixirr International may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.