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Potential International Lithium Corp. (CVE:ILC) shareholders may wish to note that the Chairman & CEO, John Wisbey, recently bought CA$220k worth of stock, paying CA$0.015 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 30%.
International Lithium Insider Transactions Over The Last Year
Notably, that recent purchase by John Wisbey is the biggest insider purchase of International Lithium shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.015). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. John Wisbey was the only individual insider to buy during the last year.
John Wisbey purchased 17.97m shares over the year. The average price per share was CA$0.015. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for International Lithium
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
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. It's great to see that International Lithium insiders own 40% of the company, worth about CA$1.5m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About International Lithium Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about International Lithium. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that International Lithium has 4 warning signs and it would be unwise to ignore these.