Yahoo Finance Hopeful Week For Insiders Who Bought CA$808.5k Of Lithium Ionic Stock
Some of the losses seen by insiders who purchased CA$808.5k worth of Lithium Ionic Corp. (CVE:LTH) shares over the past year were recovered after the stock increased by 16% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$401k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Lithium Ionic
The Last 12 Months Of Insider Transactions At Lithium Ionic
Over the last year, we can see that the biggest insider purchase was by CEO & Director Blake Hylands for CA$92k worth of shares, at about CA$1.53 per share. That means that an insider was happy to buy shares at above the current price of CA$0.85. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
In the last twelve months Lithium Ionic insiders were buying shares, but not selling. The average buy price was around CA$1.69. These transactions suggest that insiders have considered the current price attractive. 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.
Have Lithium Ionic Insiders Traded Recently?
We saw some Lithium Ionic insider buying shares in the last three months. President & Director Helio Diniz shelled out CA$7.1k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does Lithium Ionic Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 21% of Lithium Ionic shares, worth about CA$24m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Lithium Ionic Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Lithium Ionic and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lithium Ionic. Case in point: We've spotted 4 warning signs for Lithium Ionic you should be aware of, and 2 of these make us uncomfortable.
Of course Lithium Ionic 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 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.
