Insider Buys Additional AU$77k In Li-S Energy Stock

Whilst it may not be a huge deal, we thought it was good to see that the Li-S Energy Limited (ASX:LIS) Non-Executive Director, Richard Francis, recently bought AU$77k worth of stock, for AU$0.15 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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Li-S Energy Insider Transactions Over The Last Year

Notably, that recent purchase by Richard Francis is the biggest insider purchase of Li-S Energy shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.15. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Li-S Energy insiders may have bought shares in the last year, but they didn't sell any. 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!

View our latest analysis for Li-S Energy

Li-S Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Li-S Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$4.6m worth of Li-S Energy stock, about 4.7% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Li-S Energy Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Li-S Energy stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Li-S Energy. Every company has risks, and we've spotted 4 warning signs for Li-S Energy (of which 2 are a bit unpleasant!) you should know about.

But note: Li-S Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.