This ASX 300 lithium director just sold $2.2 million worth of company shares

This lithium share has reported some significant insider selling.

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It can be useful for investors to keep an eye on which ASX shares have experienced meaningful insider buying and selling.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors. If they are buying, it suggests that they are confident in the direction the company is heading and that they feel its shares are good value.

Conversely, when insiders are selling shares, it can be seen as a bearish indicator. After all, if you were confident that your shares were going higher, you would be likely to hold onto them very tightly.

One ASX 300 lithium share that has just reported a large insider sale is Leo Lithium Ltd (ASX: LLL).

With the lithium developer's shares more than doubling in value over the last 12 months, it seems that one of its directors has decided to lock in some gains.

Who is selling this ASX 300 lithium share?

According to a change of director's interest notice, Leo Lithium non-executive director Brendan Borg sold 2.1 million shares through a series of on-market trades between 23 June and 28 June.

The notice advises that Borg received an average of $1.05 per share for this parcel of shares, which equates to a total consideration of approximately $2.2 million.

Though, it is worth highlighting that Borg still has plenty of skin in the game even after this sizeable sale. The notice reveals that the non-executive director is left holding 590,000 options and 8 million Leo Lithium shares following this transaction.

So, it might be a little too soon to panic about this insider selling.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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