Insider Stock Buyers At Jindalee Lithium Recouped Some Losses This Week

Insiders who bought AU$388.3k worth of Jindalee Lithium Limited (ASX:JLL) stock in the last year recovered part of their losses as the stock rose by 18% last week. However, total losses seen by insiders are still AU$265k since the time of purchase.

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.

View our latest analysis for Jindalee Lithium

Jindalee Lithium Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Mark Scott, for AU$316k worth of shares, at about AU$0.75 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.27. So it may not tell us anything about how insiders feel about the current share price. Mark Scott was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 466.11k shares for AU$388k. But they sold 420.00k shares for AU$316k. In the last twelve months there was more buying than selling by Jindalee Lithium insiders. Their average price was about AU$0.83. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Jindalee Lithium is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Jindalee Lithium Insiders Bought Stock Recently

There was some insider buying at Jindalee Lithium over the last quarter. Insiders shelled out AU$63k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Jindalee Lithium Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Jindalee Lithium insiders own 34% of the company, worth about AU$6.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Jindalee Lithium Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Jindalee Lithium shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Jindalee Lithium has 5 warning signs (and 2 which are significant) we think you should know about.

Of course Jindalee 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.