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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Lithium Argentina AG's (TSE:LAR) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Our free stock report includes 1 warning sign investors should be aware of before investing in Lithium Argentina. Read for free now.
Lithium Argentina Insider Transactions Over The Last Year
The Lead Independent Director George Ireland made the biggest insider purchase in the last 12 months. That single transaction was for CA$587k worth of shares at a price of CA$3.42 each. That means that an insider was happy to buy shares at above the current price of CA$2.72. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Lithium Argentina insiders bought shares during the last year, they didn't sell. The average buy price was around CA$4.18. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Lithium Argentina
Lithium Argentina is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Lithium Argentina Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Lithium Argentina. In total, insiders bought CA$757k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Lithium Argentina Boast High 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. It appears that Lithium Argentina insiders own 5.2% of the company, worth about CA$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.