Reversal Of Fortune For Lithium Royalty Insiders Who Made A US$938.6k Purchase

Insiders who bought US$938.6k worth of Lithium Royalty Corp. (TSE:LIRC) stock in the last year recovered part of their losses as the stock rose by 12% last week. However, total losses seen by insiders are still US$203k 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, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Lithium Royalty

The Last 12 Months Of Insider Transactions At Lithium Royalty

In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Executive Chairman of the Board Blair Levinsky bought CA$746k worth of shares at a price of CA$8.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$6.10). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months insiders purchased 120.55k shares for CA$939k. But they sold 10.75k shares for CA$62k. In total, Lithium Royalty insiders bought more than they sold over the last year. 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 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).

Lithium Royalty Insiders Bought Stock Recently

There was some insider buying at Lithium Royalty over the last quarter. In total, insiders bought CA$77k worth of shares in that time. However, Co-Founder Mark Wellings netted CA$62k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Does Lithium Royalty Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Lithium Royalty insiders have about 1.0% of the stock, worth approximately CA$3.4m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Lithium Royalty Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Lithium Royalty insiders bought more shares in 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. Case in point: We've spotted 1 warning sign for Lithium Royalty you should be aware of.

Of course Lithium Royalty 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.