Have Insiders Sold e.l.f. Beauty Shares Recently?

Some e.l.f. Beauty, Inc. (NYSE:ELF) shareholders may be a little concerned to see that the Chairman, Tarang Amin, recently sold a substantial US$7.9m worth of stock at a price of US$185 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.5%.

View our latest analysis for e.l.f. Beauty

The Last 12 Months Of Insider Transactions At e.l.f. Beauty

Notably, that recent sale by Tarang Amin is the biggest insider sale of e.l.f. Beauty shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$182. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in e.l.f. Beauty didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 e.l.f. Beauty Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. e.l.f. Beauty insiders own about US$184m worth of shares (which is 1.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At e.l.f. Beauty Tell Us?

Insiders sold e.l.f. Beauty shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since e.l.f. Beauty is profitable and growing, we're not too worried by this. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that e.l.f. Beauty has 2 warning signs and it would be unwise to ignore these.

But note: e.l.f. Beauty 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.