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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in ioneer Ltd (ASX:INR).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for ioneer
The Last 12 Months Of Insider Transactions At ioneer
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director John Hofmeister for AU$239k worth of shares, at about AU$0.21 per share. That means that an insider was happy to buy shares at above the current price of AU$0.20. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.
In the last twelve months ioneer insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
ioneer is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
ioneer Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at ioneer. Independent Non-Executive Director Alan John Davies shelled out AU$50k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.