Yahoo Finance International Lithium Corp. (CVE:ILC) insiders placed bullish bets worth CA$996k in the last 12 months
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of International Lithium Corp. (CVE:ILC), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for International Lithium
International Lithium Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Peter Kucak bought CA$300k worth of shares at a price of CA$0.06 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.10. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 14.42m shares worth CA$996k. On the other hand they divested 3.81m shares, for CA$274k. In the last twelve months there was more buying than selling by International Lithium insiders. The average buy price was around CA$0.069. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
International Lithium is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at International Lithium Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at International Lithium. We can see that Chairman & CEO John Wisbey paid CA$142k for shares in the company. But we did see insider Peter Kucak sell shares worth CA$69k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does International Lithium Boast High Insider Ownership?
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. Insiders own 39% of International Lithium shares, worth about CA$10m. 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 International Lithium Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest International Lithium insiders are well aligned, and that they may think the share price is too low. 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 help with this, we've discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in International Lithium.
Of course International Lithium 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.
