Reversal Of Fortune For Lithium Royalty Insiders Who Made A US$1.90m Purchase

Some of the losses seen by insiders who purchased US$1.90m worth of Lithium Royalty Corp. (TSE:LIRC) shares over the past year were recovered after the stock increased by 12% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$414k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Lithium Royalty

Lithium Royalty Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Blair Levinsky bought CA$746k worth of shares at a price of CA$8.00 per share. That means that an insider was happy to buy shares at above the current price of CA$7.35. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.

While Lithium Royalty insiders bought shares during the last year, they didn't sell. They paid about CA$9.40 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lithium Royalty is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Have Lithium Royalty Insiders Traded Recently?

We've only seen a tiny insider purchase valued at CA$4.2k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership Of Lithium Royalty

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$3.0m worth of Lithium Royalty stock, about 0.8% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Lithium Royalty Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Lithium Royalty stock. Of course, the future is what matters most. So if you are interested in Lithium Royalty, you should check out this free report on analyst forecasts for the company.

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.