Non-Executive Director Christopher Chalwell Just Sold A Bunch Of Shares In Galan Lithium Limited (ASX:GLN)

Anyone interested in Galan Lithium Limited (ASX:GLN) should probably be aware that the Non-Executive Director, Christopher Chalwell, recently divested AU$633k worth of shares in the company, at an average price of AU$0.42 each. That sale was 39% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Galan Lithium

Galan Lithium Insider Transactions Over The Last Year

Notably, that recent sale by Christopher Chalwell is the biggest insider sale of Galan Lithium shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of AU$0.38. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 85.00k shares worth AU$14k. On the other hand they divested 1.50m shares, for AU$633k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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. Insiders own 25% of Galan Lithium shares, worth about AU$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Galan Lithium Insider Transactions Indicate?

An insider hasn't bought Galan Lithium stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. For instance, we've identified 6 warning signs for Galan Lithium (2 make us uncomfortable) you should be aware of.

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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. 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.
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