Sigma Lithium Falls To US$7.35, But Insiders Sold At Lower Price

Even though Sigma Lithium Corporation (NASDAQ:SGML) has fallen by 10% over the past week , insiders who sold CA$177k worth of stock over the past year have had less luck. The average selling price of CA$9.31 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Sigma Lithium Insider Transactions Over The Last Year

The insider, Bechara Azar, made the biggest insider sale in the last 12 months. That single transaction was for US$177k worth of shares at a price of US$9.41 each. 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 US$7.35. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Bechara Azar.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Sigma Lithium

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Sigma Lithium

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.8% of Sigma Lithium shares, worth about US$6.9m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Sigma Lithium Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Sigma Lithium insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Sigma Lithium and we suggest you have a look.

But note: Sigma Lithium may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.