It is not uncommon to see companies perform well in the years after insiders buy shares. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. So before you buy or sell Elevate Credit, Inc. (NYSE: ELVT), you might want to know if any insiders have bought or sold.
Are Insider Trading Important?
It is perfectly legal for company insiders, including board members, to buy and sell shares in a company. However, most countries require the company to disclose these transactions to the market.
We don’t believe shareholders should just follow insider trading. But it makes perfect sense to keep an eye on what insiders are doing. As Peter Lynch said, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”
See our latest review for Elevate Credit
The last 12 months of insider trading at Elevate Credit
In the past twelve months, the largest single insider sale occurred when Chief Product Officer Scott Greever sold US $ 108,000 worth of shares at a price of US $ 4.32 per share. While insider selling is negative, for us it is more negative if stocks are sold for a lower price. The positive side is that this sale took place above the last price (US $ 3.65). This may not shed much light on initiate confidence at current levels. The only individual insider seller over the past year was Scott Greever.
You can see insider trading (by companies and individuals) over the past year shown in the graph below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Does Elevate Credit claim strong insider ownership?
Examining the total insider stakes in a company can help you determine if they are well aligned with common shareholders. I think it’s a good sign if there are insiders who own a significant number of shares in the company. Elevate Credit insiders own around $ 29 million in shares. This equates to 22% of the business. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
So what does this data suggest about Elevate Credit Insiders?
There haven’t been any insider trading in the past three months – that doesn’t mean much. The transactions made by the insiders of Elevate Credit don’t give us much encouragement. But we love that the insiders own a good chunk of the business. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To help you, we have discovered 4 warning signs (2 cannot be ignored!) Which you should be aware of before buying shares of Elevate Credit.
Of course Elevate Credit may not be the best stock to buy. Then you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are the people who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
If you want to redeem Elevate Credits, open an account with the cheapest platform * approved by professionals, Interactive brokers. Their clients from more than 200 countries and territories trade stocks, options, futures, currencies, bonds and funds around the world from a single integrated account.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Annual Online Review 2020
Do you have any comments on this article? Concerned about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.