Insiders At Fulcrum Lithium See Good Returns After Buying Stock Worth AU$1.42m

Fulcrum Lithium Ltd (ASX:FUL) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. After accounting for the recent loss, the AU$1.42m worth of shares they purchased is now worth AU$1.92m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Fulcrum Lithium

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Norman Seckold bought AU$1.4m worth of shares at a price of AU$0.20 per share. That means that an insider was happy to buy shares at above the current price of AU$0.055. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Norman Seckold was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Fulcrum Lithium

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Fulcrum Lithium

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Fulcrum Lithium insiders own 48% of the company, currently worth about AU$3.4m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Fulcrum Lithium Insiders?

The fact that there have been no Fulcrum Lithium insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Fulcrum Lithium insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fulcrum Lithium. Be aware that Fulcrum Lithium is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

Of course Fulcrum 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 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.