IperionX Insiders Placed Bullish Bets Worth US$3.25m

In the last year, multiple insiders have substantially increased their holdings of IperionX Limited (ASX:IPX) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for IperionX

IperionX Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Todd Hannigan bought AU$842k worth of shares at a price of AU$0.99 per share. We do like to see buying, but this purchase was made at well below the current price of AU$2.11. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

IperionX insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$1.15. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does IperionX Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of IperionX shares, worth about AU$81m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The IperionX Insider Transactions Indicate?

It doesn't really mean much that no insider has traded IperionX shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in IperionX and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for IperionX (of which 2 don't sit too well with us!) you should know about.

Of course IperionX may not be the best stock to buy. So you may wish to see this free collection of high quality 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.