This ASX lithium stock is down 79% in 2024, and a director just bought 300,000 shares

This lithium director just bought the dip in a big way.

| More on:
Modern accountant woman in a light business suit in modern green office with documents and laptop.

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

Most investors probably wouldn't relish the idea of buying an ASX share that has already fallen by 77%. The ASX is full of investors who love to 'buy the dip', of course. But there aren't too many investors who would regard a 77% share price drop as just a dip. Particularly from an ASX lithium stock.

After all, a 77% share price plunge arguably indicates that either the market views the stock as exceptionally overvalued or else in terminal decline.

That's exactly the scenario that investors in ASX lithium stock Galan Lithium Ltd (ASX: GLN) are confronting today. Right now, the Galan Lithium share price is down a nasty 5% at 15.2 cents a share. At the start of 2024, those same shares were going for as much as 73 cents each, meaning that Galan Lithium is today down a painful 79.2% year to date.

Investors have also endured an 81.2% drop over the past 12 months and an even more dire 92.9% fall from 2022's all-time highs of over $2.15 a share.

Check that all out below for yourself:

Created with Highcharts 11.4.3Galan Lithium PriceZoom1M3M6MYTD1Y5Y10YALL1 Jan 202422 Jul 2024Zoom ▾Jan '24Feb '24Mar '24Apr '24May '24Jun '24Jul '24Jan '24Jan '24Mar '24Mar '24May '24May '24Jul '24Jul '24www.fool.com.au

So it goes without saying that investors in this ASX lithium stock would probably be a fairly dejected bunch today. However, those investors might be feeling a whole lot better today than they were this time last week.

That's because we just learned that one of Galan's insiders has made a large purchase of this company's shares.

ASX lithium stock insider buys up big

According to an ASX filing that was released last Friday morning, that insider was Galan non-executive director Terry Gardiner.

The filing shows that Gardiner purchased an additional 200,000 fully paid ordinary shares of Galan Lithium on 18 July last week, in addition to 100,000 listed options.

These purchases were made via on-market trades. Gardiner paid $30,668 for these 200,000 shares, and a further $6,083 for the options. That implies purchase prices of 15.33 cents each for the shares and 6.08 cents for the options.

These buys take Gardiner's stake in Galan to a total of 5,388,817 ordinary shares and 1,315,217 listed options. He also owns another 3 million performance rights for this ASX lithium stock.

Those ordinary shares in Galan would have a net value of approximately $819,100 at current pricing.

So no doubt Galan Lithium investors will appreciate this show of support from this ASX lithium stock's director last week. But we'll have to wait and see whether this turns out to be a savvy 'buy the dip' move for Gardiner.

Should you invest $1,000 in Aristocrat Leisure Limited right now?

Before you buy Aristocrat Leisure Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Aristocrat Leisure Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Sebastian Bowen 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 Share Market News

Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A male investor sits at his desk pondering at his laptop screen with a piece of paper in his hand.
Share Market News

Is the ASX 200 on the verge of a market correction?

Here's how close we are to a market correction after another horror week.

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
REITs

Why this could be a great ASX share sector to invest in right now

This could be a smart play right now.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

How an $8k investment in this ASX All Ords stock one-year ago is worth $58,182 today

The ASX All Ords stock has enjoyed a stellar year. But why?

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finally caught a break this Friday.

Read more »

A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.
Share Market News

It's official: US stock market enters correction

The S&P 500 is now down 10.13% from its most recent peak.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Should you buy the dip on the CSL share price?

Has the market sell-off created an opportunity to buy this mega ASX 200 blue chip at an attractive price?

Read more »

Man with rocket wings which have flames coming out of them.
Broker Notes

Guess which ASX 200 share Bell Potter says could rocket 100%+

The broker thinks this share is seriously undervalued.

Read more »