Tantalex Lithium Resources Independent Director Acquires 40% More Stock

Those following along with Tantalex Lithium Resources Corp. (CSE:TTX) will no doubt be intrigued by the recent purchase of shares by Simon Collins, Independent Director of the company, who spent a stonking CA$684k on stock at an average price of CA$0.035. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 40%.

Check out our latest analysis for Tantalex Lithium Resources

The Last 12 Months Of Insider Transactions At Tantalex Lithium Resources

In fact, the recent purchase by Independent Director Simon Collins was not their only acquisition of Tantalex Lithium Resources shares this year. Earlier in the year, they paid CA$0.11 per share in a CA$3.0m purchase. That means that an insider was happy to buy shares at above the current price of CA$0.035. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Simon Collins was the only individual insider to buy shares in the last twelve months.

Simon Collins bought a total of 57.78m shares over the year at an average price of CA$0.071. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Tantalex Lithium Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Tantalex Lithium Resources insiders own about CA$2.2m worth of shares (which is 8.2% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Tantalex Lithium Resources Insiders?

It's certainly positive to see the recent insider purchase. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Tantalex Lithium Resources stock. 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. When we did our research, we found 6 warning signs for Tantalex Lithium Resources (4 are significant!) that we believe deserve your full attention.

Of course Tantalex Lithium Resources 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.