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Need To Know: Argentina Lithium & Energy Corp. (CVE:LIT) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Argentina Lithium & Energy Corp. (CVE:LIT).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

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View our latest analysis for Argentina Lithium & Energy

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 Chairman Joseph Grosso bought CA$75k worth of shares at a price of CA$0.05 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$0.055. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Argentina Lithium & Energy share holders is that insiders were buying at near the current price.

While Argentina Lithium & Energy insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSXV:LIT Recent Insider Trading April 14th 2020
TSXV:LIT Recent Insider Trading April 14th 2020

Argentina Lithium & Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Argentina Lithium & Energy

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. From our data, it seems that Argentina Lithium & Energy insiders own 12% of the company, worth about CA$217k. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Argentina Lithium & Energy Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Argentina Lithium & Energy insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Argentina Lithium & Energy is showing 4 warning signs in our investment analysis, and 3 of those are significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.