Sigma Lithium Insiders Benefitted From Selling Stock At CA$9.31

While it’s been a great week for Sigma Lithium Corporation (NASDAQ:SGML) shareholders after stock gained 10%, company insiders might have missed out on those gains after selling stock earlier this year. The value of their investment would have been higher had they waited to sell their stock.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Sigma Lithium

Sigma Lithium Insider Transactions Over The Last Year

The Corporate Director, 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. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.30. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of Bechara Azar's holding. The only individual insider seller over the last year was Bechara Azar.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Sigma Lithium

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 2.6% of Sigma Lithium shares, worth about US$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sigma Lithium Insider Transactions Indicate?

The fact that there have been no Sigma Lithium insider transactions recently certainly doesn't bother us. Our analysis of Sigma Lithium insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in Sigma Lithium, you should check out this free report on analyst forecasts for the company.

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.