Despite Recent Gains, ioneer Insiders Are Still Down AU$136k

Insiders who purchased AU$291.5k worth of ioneer Ltd (ASX:INR) shares over the past year recouped some of their losses after price gained 10% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$136k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for ioneer

The Last 12 Months Of Insider Transactions At ioneer

In fact, the recent purchase by Independent Non-Executive Director Alan John Davies was not their only acquisition of ioneer shares this year. They previously made an even bigger purchase of AU$252k worth of shares at a price of AU$0.36 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.16). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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. The only individual insider to buy over the last year was Alan John Davies.

Alan John Davies bought a total of 974.61k shares over the year at an average price of AU$0.30. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does ioneer Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. ioneer insiders own about AU$26m worth of shares. That equates to 7.6% of the company. 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 ioneer Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in ioneer and their transactions don't cause us concern. 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. At Simply Wall St, we've found that ioneer has 4 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course ioneer 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.