Lead Independent Director of Lithium Argentina George Ireland Buys 4.5% More Shares

Investors who take an interest in Lithium Argentina AG (TSE:LAR) should definitely note that the Lead Independent Director, George Ireland, recently paid CA$2.52 per share to buy CA$409k worth of the stock. Although the purchase only increased their holding by 4.5%, it is still a solid purchase in our view.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Lithium Argentina Insider Transactions Over The Last Year

Notably, that recent purchase by Lead Independent Director George Ireland was not the only time they bought Lithium Argentina shares this year. They previously made an even bigger purchase of CA$587k worth of shares at a price of CA$3.42 per share. That means that even when the share price was higher than CA$2.46 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Lithium Argentina insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$3.84. This is nice to see since it implies that insiders might see value around current prices. 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!

View our latest analysis for Lithium Argentina

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Lithium Argentina

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. Lithium Argentina insiders own about CA$21m worth of shares. That equates to 5.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Lithium Argentina Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Lithium Argentina 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. For example - Lithium Argentina has 1 warning sign we think you should be aware of.

But note: Lithium Argentina may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.