Yahoo Finance Trade Alert: The Founder & Independent Director Of Standard Lithium Ltd. (CVE:SLL), Anthony Alvaro, Has Just Spent CA$93k Buying 20% More Shares
Even if it's not a huge purchase, we think it was good to see that Anthony Alvaro, the Founder & Independent Director of Standard Lithium Ltd. (CVE:SLL) recently shelled out CA$93k to buy stock, at CA$1.01 per share. That purchase might not be huge but it did increase their holding by 20%.
See our latest analysis for Standard Lithium
The Last 12 Months Of Insider Transactions At Standard Lithium
Notably, that recent purchase by Anthony Alvaro is the biggest insider purchase of Standard Lithium shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.42. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Standard Lithium insiders were buying shares, but not selling. The average buy price was around CA$0.93. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Standard Lithium insiders own 4.8% of the company, worth about CA$6.2m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Standard Lithium Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Standard Lithium insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Standard Lithium you should be aware of, and 2 of them can't be ignored.
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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