Some of the losses seen by insiders who purchased US$1.25m worth of International Battery Metals Ltd. (CVE:IBAT) shares over the past year were recovered after the stock increased by 15% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$320k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for International Battery Metals

International Battery Metals Insider Transactions Over The Last Year

The insider Garry Flowers made the biggest insider purchase in the last 12 months. That single transaction was for CA$679k worth of shares at a price of CA$0.70 each. That means that even when the share price was higher than CA$0.55 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid CA$1.2m for 1.69m shares. But insiders sold 588.56k shares worth CA$425k. Overall, International Battery Metals insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insiders At International Battery Metals Have Sold Stock Recently

The last three months saw significant insider selling at International Battery Metals. Specifically, Director Jacob Warnock ditched CA$425k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of International Battery Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 21% of International Battery Metals shares, worth about CA$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At International Battery Metals Tell Us?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. While it's good to be aware of 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. For example, International Battery Metals has 7 warning signs (and 4 which are concerning) we think you should know about.

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.