Whilst it may not be a huge deal, we thought it was good to see that the Frontier Lithium Inc. (CVE:FL) Vice President of Exploration, Garth Drever, recently bought CA$59k worth of stock, for CA$0.29 per share. However, we do note that it only increased their holding by 6.6%, and it wasn't a huge purchase by absolute value, either.
Frontier Lithium Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Bruce Barker bought CA$182k worth of shares at a price of CA$0.26 per share. That means that an insider was happy to buy shares at above the current price of CA$0.24. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. We note that Bruce Barker was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 1.39m shares for CA$423k. But insiders sold 700000 shares worth CA$180k. Overall, Frontier Lithium insiders were net buyers last year. They paid about CA$0.30 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Frontier Lithium
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. Insiders own 26% of Frontier Lithium shares, worth about CA$10m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Frontier Lithium Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Frontier Lithium we think they are probably pretty confident of a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Of course Frontier Lithium may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.