Independent Chairman of the Board Roy Hoover Just Bought 5.7% More Shares In Elanco Animal Health Incorporated (NYSE:ELAN)

Potential Elanco Animal Health Incorporated (NYSE:ELAN) shareholders may wish to note that the Independent Chairman of the Board, Roy Hoover, recently bought US$111k worth of stock, paying US$11.13 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.7%.

See our latest analysis for Elanco Animal Health

The Last 12 Months Of Insider Transactions At Elanco Animal Health

In the last twelve months, the biggest single purchase by an insider was when President Jeffrey Simmons bought US$436k worth of shares at a price of US$14.54 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.57). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.5% of Elanco Animal Health shares, worth about US$22m. 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 Do The Elanco Animal Health Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Elanco Animal Health we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Elanco Animal Health.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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