Atlantic Lithium Limited (LON:ALL) insiders' AU$932k purchase saw a boost of AU$54k after market cap rose UK£26m
Last week, Atlantic Lithium Limited (LON:ALL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 17% last week, resulting in a UK£26m increase in the company's market worth. In other words, the original AU$932k purchase is now worth AU$986k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Atlantic Lithium
Atlantic Lithium Insider Transactions Over The Last Year
The Executive Chairman Neil Lindsey Herbert made the biggest insider purchase in the last 12 months. That single transaction was for UK£517k worth of shares at a price of UK£0.28 each. That implies that an insider found the current price of UK£0.30 per share to be enticing. 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. 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. The good news for Atlantic Lithium share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid UK£932k for 3.24m shares. But insiders sold 600.00k shares worth UK£342k. In the last twelve months there was more buying than selling by Atlantic Lithium insiders. 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!
Atlantic Lithium is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Atlantic Lithium Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Atlantic Lithium. In total, insiders bought UK£932k 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Atlantic Lithium insiders own 2.0% of the company, worth about UK£3.6m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
So What Do The Atlantic Lithium Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Atlantic Lithium insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for Atlantic Lithium (of which 2 are concerning!) you should know about.
But note: Atlantic Lithium may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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