Hopeful Week For Insiders Who Bought CA$808.5k Of Lithium Ionic Stock

Some of the losses seen by insiders who purchased CA$808.5k worth of Lithium Ionic Corp. (CVE:LTH) shares over the past year were recovered after the stock increased by 20% over the past week. However, total losses seen by insiders are still CA$353k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Lithium Ionic

The Last 12 Months Of Insider Transactions At Lithium Ionic

The CEO & Director Blake Hylands made the biggest insider purchase in the last 12 months. That single transaction was for CA$92k worth of shares at a price of CA$1.53 each. That means that an insider was happy to buy shares at above the current price of CA$0.95. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Lithium Ionic insiders bought shares during the last year, they didn't sell. The average buy price was around CA$1.69. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Lithium Ionic is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Lithium Ionic Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at Lithium Ionic. President & Director Helio Diniz purchased CA$7.1k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Does Lithium Ionic Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 21% of Lithium Ionic shares, worth about CA$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Lithium Ionic Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Lithium Ionic and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lithium Ionic. Every company has risks, and we've spotted 3 warning signs for Lithium Ionic (of which 2 are a bit unpleasant!) you should know about.

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.