Yahoo Finance Independent Chairman of the Board Roy Hoover Just Bought 7.9% More Shares In Elanco Animal Health Incorporated (NYSE:ELAN)
Investors who take an interest in Elanco Animal Health Incorporated (NYSE:ELAN) should definitely note that the Independent Chairman of the Board, Roy Hoover, recently paid US$29.38 per share to buy US$294k worth of the stock. Although the purchase only increased their holding by 7.9%, it is still a solid purchase in our view.
See our latest analysis for Elanco Animal Health
Elanco Animal Health Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Chairman of the Board Roy Hoover was not their only acquisition of Elanco Animal Health shares this year. Earlier in the year, they paid US$32.44 per share in a US$811k purchase. That means that an insider was happy to buy shares at above the current price of US$28.17. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Elanco Animal Health 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Elanco Animal Health
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Elanco Animal Health insiders own 0.2% of the company, worth about US$30m. 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 Does This Data Suggest About Elanco Animal Health Insiders?
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. Given that insiders also own a fair bit of Elanco Animal Health we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Elanco Animal Health.
But note: Elanco Animal Health 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.
