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Those following along with Liontown Resources Limited (ASX:LTR) will no doubt be intrigued by the recent purchase of shares by Timothy Rupert Goyder, Non-Executive Chairman of the company, who spent a stonking AU$1.5m on stock at an average price of AU$0.77. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
Our free stock report includes 1 warning sign investors should be aware of before investing in Liontown Resources. Read for free now.
Liontown Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Timothy Rupert Goyder was the biggest purchase of Liontown Resources shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.81 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Liontown Resources insiders decided to buy shares at close to current prices.
In the last twelve months Liontown Resources insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Liontown Resources
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Liontown Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Liontown Resources insiders own about AU$300m worth of shares (which is 15% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Liontown Resources Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Liontown Resources. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Liontown Resources that deserve your attention before buying any shares.