Last week, Argentina Lithium & Energy Corp. (CVE:LIT) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 20% last week, resulting in a CA$18m increase in the company's market worth. In other words, the original CA$1.9m purchase is now worth CA$3.3m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Argentina Lithium & Energy
In the last twelve months, the biggest single purchase by an insider was when insider Jack Yetiv bought CA$1.8m worth of shares at a price of CA$0.20 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.35. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 9.29m shares worth CA$1.9m. On the other hand they divested 40.00k shares, for CA$20k. Overall, Argentina Lithium & Energy insiders were net buyers during the last year. 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!
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.
Argentina Lithium & Energy Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Argentina Lithium & Energy. insider Jack Yetiv spent CA$1.8m on stock, and there wasn't any selling. This makes one think the business has some good points.
Does Argentina Lithium & Energy Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Argentina Lithium & Energy insiders own 15% of the company, worth about CA$7.0m. 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 Argentina Lithium & Energy Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Argentina Lithium & Energy shares, given these transactions (along with notable insider ownership of the company). 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 instance, we've identified 3 warning signs for Argentina Lithium & Energy (2 are concerning) you should be aware of.
Of course Argentina Lithium & Energy 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.
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