Insider Buying: The Element Solutions Inc (NYSE:ESI) Founder & Executive Chairman Just Bought 6.9% More Shares

Those following along with Element Solutions Inc (NYSE:ESI) will no doubt be intrigued by the recent purchase of shares by Martin Ellis Franklin, Founder & Executive Chairman of the company, who spent a stonking US$17m on stock at an average price of US$19.07. While that only increased their holding size by 6.9%, it is still a big swing by our standards.

Check out our latest analysis for Element Solutions

Element Solutions Insider Transactions Over The Last Year

In fact, the recent purchase by Martin Ellis Franklin was the biggest purchase of Element Solutions 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 above the current price of US$19.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Martin Ellis Franklin.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Element Solutions

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Element Solutions insiders own 7.3% of the company, currently worth about US$334m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Element Solutions Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Element Solutions. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Element Solutions (1 is significant!) that we believe deserve your full attention.

Of course Element Solutions 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, 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.