Yahoo Finance This Element Solutions Insider Increased Their Holding In The Last Year
Looking at Element Solutions Inc's (NYSE:ESI ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Element Solutions
The Last 12 Months Of Insider Transactions At Element Solutions
In the last twelve months, the biggest single purchase by an insider was when Founder & Executive Chairman Martin Franklin bought US$17m worth of shares at a price of US$19.14 per share. That implies that an insider found the current price of US$19.47 per share to be enticing. 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 Element Solutions insider decided to buy shares at close to current prices. Martin Franklin was the only individual insider to buy shares in the last twelve months.
Martin Franklin bought a total of 1.04m shares over the year at an average price of US$19.05. 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!
Element Solutions is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Element Solutions Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Element Solutions. Specifically, Independent Director Nichelle Maynard-Elliott ditched US$82k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. Element Solutions insiders own about US$361m worth of shares (which is 7.7% of the company). 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 Does This Data Suggest About Element Solutions Insiders?
An insider sold Element Solutions shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Element Solutions has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
