Despite Hitting CA$0.45, International Battery Metals Insiders Still Sold Too Soon

Even though International Battery Metals Ltd. (CVE:IBAT) has fallen by 19% over the past week , insiders who sold US$425k worth of stock over the past year have had less luck. The average selling price of US$0.72 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for International Battery Metals

International Battery Metals Insider Transactions Over The Last Year

The Director, Jacob Warnock, made the biggest insider sale in the last 12 months. That single transaction was for CA$425k worth of shares at a price of CA$0.80 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$0.45). So it may not shed much light on insider confidence at current levels. Jacob Warnock was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 21% of International Battery Metals shares, worth about CA$23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At International Battery Metals Tell Us?

The fact that there have been no International Battery Metals insider transactions recently certainly doesn't bother us. Our analysis of International Battery Metals insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing International Battery Metals. Our analysis shows 4 warning signs for International Battery Metals (3 are a bit unpleasant!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.