Have Liontown Resources Insiders Been Selling Stock?

We wouldn't blame Liontown Resources Limited (ASX:LTR) shareholders if they were a little worried about the fact that Timothy Rupert Goyder, the Non-Executive Chairman recently netted about AU$1.5m selling shares at an average price of AU$0.77. However, that sale only accounted for 0.6% of their holding, so arguably it doesn't say much about their conviction.

We've discovered 2 warning signs about Liontown Resources. View them for free.

Liontown Resources Insider Transactions Over The Last Year

In fact, the recent sale by Timothy Rupert Goyder was the biggest sale of Liontown Resources shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.68). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 250.10k shares worth AU$184k. But they sold 2.00m shares for AU$1.5m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Liontown Resources

I will like Liontown Resources better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Liontown Resources insiders own 15% of the company, currently worth about AU$249m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Liontown Resources Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. To help with this, we've discovered 2 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Liontown Resources.

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.