Executive VP of Strategy and Head of Industrial & Speciality Matthew Liebowitz Sold A Bunch Of Shares In Element Solutions

We wouldn't blame Element Solutions Inc (NYSE:ESI) shareholders if they were a little worried about the fact that Matthew Liebowitz, the Executive VP of Strategy and Head of Industrial & Speciality recently netted about US$1.3m selling shares at an average price of US$26.55. That's a big disposal, and it decreased their holding size by 47%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Element Solutions

In the last twelve months, the biggest single sale by an insider was when the Founder & Executive Chairman, Martin Franklin, sold US$52m worth of shares at a price of US$26.10 per share. That means that an insider was selling shares at below the current price (US$26.51). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Martin Franklin's stake.

In the last year Element Solutions insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Element Solutions

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Does Element Solutions Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Element Solutions insiders own 5.8% of the company, worth about US$372m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Element Solutions Insider Transactions Indicate?

An insider sold Element Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Element Solutions makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Element Solutions that deserve your attention before buying any shares.

But note: Element Solutions 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.