Sigma Lithium Co-Chairperson Marcelo Freire de Paiva Sells 8.6% Of Holding

Shareholders of Sigma Lithium Corporation ( NASDAQ:SGML ) may have caught the fact that Marcelo Freire de Paiva, the Co-Chairperson recently netted about US$1.763M selling shares at an average price of US$10.04. While this is a hefty sum, investors will be calmed knowing that this only amounted to 8.6% of their entire holding.

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The Last 12 Months Of Insider Transactions At Sigma Lithium

In fact, the recent sale by Marcelo Freire de Paiva was the biggest sale of Sigma Lithium shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$10.61. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 6.46k shares worth US$32k. But they sold 431.20k shares for US$4.1m. Over the last year we saw more insider selling of Sigma Lithium shares, than buying. The average sell price was around US$9.49. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Sigma Lithium

I will like Sigma Lithium better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.6% of Sigma Lithium shares, worth about US$17m. 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 Does This Data Suggest About Sigma Lithium Insiders?

Unfortunately, there has been more insider selling of Sigma Lithium stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sigma Lithium. For example, Sigma Lithium has 3 warning signs (and 2 which are potentially serious) we think you should know about.

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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.