Christopher Lutes Is The Chief Strategy Officer of Elevate Credit, Inc. (NYSE:ELVT) And They Just Picked Up 6.2% More Shares

Even if it's not a huge purchase, we think it was good to see that Christopher Lutes, the Chief Strategy Officer of Elevate Credit, Inc. (NYSE:ELVT) recently shelled out US$100k to buy stock, at US$2.42 per share. However, it only increased their shares held by 6.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Elevate Credit

The Last 12 Months Of Insider Transactions At Elevate Credit

In fact, the recent purchase by Christopher Lutes was the biggest purchase of Elevate Credit shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$2.54. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Elevate Credit insiders decided to buy shares at close to current prices.

While Elevate Credit insiders bought shares during the last year, they didn't sell. 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!

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.

Insider Ownership of Elevate Credit

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Elevate Credit insiders own 21% of the company, worth about US$17m. 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 Elevate Credit Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Elevate Credit shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Elevate Credit and understanding them should be part of your investment process.

But note: Elevate Credit 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.