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Viewing insider transactions for International Battery Metals Ltd.'s (CVE:IBAT ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
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 4 warning signs investors should be aware of before investing in International Battery Metals. Read for free now.
The Last 12 Months Of Insider Transactions At International Battery Metals
The Director Jacob Warnock made the biggest insider purchase in the last 12 months. That single transaction was for CA$978k worth of shares at a price of CA$0.42 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.57. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Jacob Warnock bought 3.35m shares over the last 12 months at an average price of CA$0.34. The chart below shows insider transactions (by companies and individuals) over the last year. 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 International Battery Metals
International Battery Metals 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.
Insider Ownership Of International Battery Metals
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. International Battery Metals insiders own about CA$46m worth of shares. That equates to 33% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The International Battery Metals Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of International Battery Metals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing International Battery Metals. When we did our research, we found 4 warning signs for International Battery Metals (3 don't sit too well with us!) that we believe deserve your full attention.