In the last year, multiple insiders have substantially increased their holdings of Lithium Royalty Corp. (TSE:LIRC) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Lithium Royalty

The Last 12 Months Of Insider Transactions At Lithium Royalty

In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Executive Chairman of the Board Blair Levinsky bought CA$746k worth of shares at a price of CA$8.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$7.15). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

In the last twelve months Lithium Royalty insiders were buying shares, but not selling. Their average price was about CA$9.39. This is nice to see since it implies that insiders might see value around current prices. 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!

Lithium Royalty 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.

Have Lithium Royalty Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Lithium Royalty. insider Ernie Ortega bought CA$7.5k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does Lithium Royalty Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$4.4m worth of Lithium Royalty stock, about 1.1% of the company. We prefer to see high levels of insider ownership.