4 directors are buying the dip on this ASX lithium stock

Insiders have been busy buying shares in this lithium miner.

| More on:
Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

IGO Ltd (ASX: IGO) shares have taken a real beating over the last 12 months.

During this time, the ASX lithium stock has lost over 40% of its value. As a comparison, the ASX 200 index is up approximately 6% over the same period.

It appears that the company's directors believe the selling has been overdone.

That's because no less than four of them have been picking up IGO shares this month.

Insiders buying this ASX lithium stock

According to a series of change of director's interest notices, the four directors dipped into the market a day after the release of the company's half-year results last week.

The largest purchase came from the ASX lithium stock's new CEO, Ivan Vella.

Vella, who has been in the top job since December, made two purchases of 35,000 and 6,500 shares on 23 February through on-market trades. This represented investments of $254,569.18 and $47,283.18, respectively.

Also making a large investment in IGO shares was the company's chair, Michael Nossal. He snapped up 25,000 IGO shares through an on-market trade on the same day for a total consideration $180,840.46.

Non-executive director, Debra Bakker, also made a sizeable investment. She picked up 7,000 shares for a total consideration of $50,400.00 through an on-market trade on 23 February.

Finally, fellow non-executive director, Tracey Arlaud, bought 3,093 shares through an on-market trade the same day. Arlaud paid a total of US$14,722.68 according to the notice.

Should you buy?

Insider buying is often regarded as a bullish indicator. After all, who know a company better than those inside its c-suites.

Goldman Sachs is likely to be supportive of the aforementioned purchases. Last week, the broker retained its buy rating with an $8.00 price target.

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.

More on Materials Shares

smiling worker stands before power generator technology
Materials Shares

Fortescue shares jump 5% on record performance

This mining giant was in fine form during the quarter.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Materials Shares

Should you buy Pilbara Minerals shares today?

Let's see if analysts think investors should be buying the lithium giant's shares.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Expert says this ASX mining stock could rise almost 30%

Let's see which miner is being tipped as a buy for investors right now.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

BHP shares charge higher on record copper and iron ore production

Let's see how the miner performed during the fourth quarter.

Read more »

A man stands with hands on hips surveying construction of three high-rise buildings.
Materials Shares

Building activity on the rise – will ASX materials shares benefit?

New data from the March quarter shows a sharp rise in building activity. 

Read more »

Man smiling at a laptop because of a rising share price.
Materials Shares

Macquarie predicts 11% upside for this ASX materials stock

Here's why the broker is positive on the stock.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Rio Tinto share price falls on Q2 update

Let's see what the mining giant reported for the second quarter.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Materials Shares

Could these 3 ASX materials shares be set to double?

This broker has buy ratings and aggressive price targets for these holdings. 

Read more »