International Lithium Falls To CA$0.035, But Insiders Sold At Lower Price

International Lithium Corp.'s (CVE:ILC) stock price has dropped 22% in the previous week, but insiders who sold CA$245k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of CA$0.064 is still below the current share price.

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 International Lithium

International Lithium Insider Transactions Over The Last Year

Earlier in the year, they sold shares at a price ofCA$0.071 per share in a -CA$80k transaction. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$0.035. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of International Lithium shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Are International Lithium Insiders Buying Or Selling?

We saw Chairman & CEO John Wisbey buy shares worth CA$665 in the last three months. However that only slightly eclipses the sales, CA$500 worth of sales. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does International Lithium Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that International Lithium insiders own 39% of the company, worth about CA$3.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The International Lithium Insider Transactions Indicate?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. We're a little cautious about the insider selling at International Lithium. But we do like the fact that insiders own a fair chunk of 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. Every company has risks, and we've spotted 4 warning signs for International Lithium you should know about.

Of course International Lithium 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.