Executive Chairman of IperionX Todd Hannigan Buys 3.6% More Shares

Investors who take an interest in IperionX Limited (ASX:IPX) should definitely note that the Executive Chairman, Todd Hannigan, recently paid AU$1.47 per share to buy AU$763k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.6%.

Check out our latest analysis for IperionX

The Last 12 Months Of Insider Transactions At IperionX

In fact, the recent purchase by Executive Chairman Todd Hannigan was not their only acquisition of IperionX shares this year. They previously made an even bigger purchase of AU$842k worth of shares at a price of AU$0.99 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.50. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While IperionX insiders bought shares during the last year, they didn't sell. They paid about AU$1.10 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership Of IperionX

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of IperionX shares, worth about AU$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The IperionX Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in IperionX shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for IperionX (of which 2 don't sit too well with us!) you should know about.

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 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.