Jindalee Lithium Up 11%, But Some Insiders Miss Out

Last week, Jindalee Lithium Limited's (ASX:JLL) stock jumped 11%, but insiders who sold AU$316k worth of stock in over the past year are likely to be in a better position. Selling at an average price of AU$0.75, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, 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

In the last twelve months, the biggest single sale by an insider was when the insider, Mark Scott, sold AU$316k worth of shares at a price of AU$0.75 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$0.21. 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.

Happily, we note that in the last year insiders paid AU$63k for 211.11k shares. But insiders sold 420.00k shares worth AU$316k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Jindalee Lithium

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 36% of Jindalee Lithium shares, worth about AU$5.5m. 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 Does This Data Suggest About Jindalee Lithium Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Jindalee Lithium in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 are a bit concerning!) that you ought to be aware of before buying any shares in Jindalee Lithium.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.