Those following along with IperionX Limited (ASX:IPX) will no doubt be intrigued by the recent purchase of shares by Todd Hannigan, Executive Chairman of the company, who spent a stonking AU$2.7m on stock at an average price of AU$5.16. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.0%.
IperionX Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman Todd Hannigan was not their only acquisition of IperionX shares this year. Earlier in the year, they paid AU$6.28 per share in a AU$2.9m purchase. That means that an insider was happy to buy shares at above the current price of AU$3.71. 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. We always take careful note of the price insiders pay when purchasing shares. 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.
Happily, we note that in the last year insiders paid AU$15m for 2.98m shares. On the other hand they divested 300.00k shares, for AU$2.0m. In total, IperionX insiders bought more than they sold over the last year. The average buy price was around AU$5.15. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for IperionX
IperionX is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does IperionX 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. It's great to see that IperionX insiders own 16% of the company, worth about AU$219m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The IperionX Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about IperionX. 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. You'd be interested to know, that we found 1 warning sign for IperionX and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.