We note that the Lithium Americas Corp. (TSE:LAC) Chief Technical Officer, Rene LeBlanc, recently sold US$95k worth of stock for US$3.94 per share. It wasn't a huge sale, but it did reduce their holding by 38%. This does not instill confidence.
The Last 12 Months Of Insider Transactions At Lithium Americas
Executive Vice Chairman John Kanellitsas made the biggest insider purchase in the last 12 months. That single transaction was for CA$440k worth of shares at a price of CA$4.76 each. That means that an insider was happy to buy shares at above the current price of CA$4.06. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 215000 shares worth CA$965k. On the other hand they divested 24000 shares, for CA$95k. Overall, Lithium Americas insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Lithium Americas 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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.1% of Lithium Americas shares, worth about CA$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Lithium Americas Insider Transactions Indicate?
An insider sold Lithium Americas shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Lithium Americas 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.
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