Insider Trades: Five stocks insiders are buying and selling
Directors from Core Lithium sold more than $1 million in shares after exercising 6 cent options.
Source: Business man on stock market financial trade indicator background
Mentioned
KEY POINTS
- Directors from Core Lithium sold ~$1m after exercising 6 cent options
- Directors from MFF Investments, City Chic and Collins Food buy the dip
- Meteoric Resources has rallied more than 200% in the past month but one director doesn't seem to mind paying extra
A summary of the top director transactions from 22 December to 28 December 2022. You can find out more about why director transactions are a big deal here.
Top 10 insider moves by value
Code | Company | Date | Director | Type | Price | Value | Notes |
|---|---|---|---|---|---|---|---|
Core Lithium | 22/12/22 | Malcolm McComas | Sell | $1.05 | $837,581 | On-market trade | |
MFF Capital Investments | 23/12/22 | Christopher Mackay | Buy | $2.27 | $528,971 | On-market trade | |
Core Lithium | 22/12/22 | Gregory English | Sell | $1.04 | $311,280 | On-market trade | |
Meteoric Resources | 22/12/22 | Paul Kitto | Buy | $0.04 | $253,208 | On-market trade | |
Latin Resources | 23/12/22 | Brent Jones | Sell | $0.11 | $189,000 | On-market trade | |
Infinity Lithium Corporation | 23/12/22 | Remy Welschinger | Buy | $0.11 | $109,776 | On-market trade | |
Collins Foods | 23/12/22 | Drew O'Malley | Buy | $7.05 | $84,600 | On-market trade | |
Iron Road | 23/12/22 | Glen Chipman | Buy | $0.13 | $55,190 | On-market trade | |
City Chic Collective | 22/12/22 | Michael Kay | Buy | $0.50 | $50,000 | On-market trade | |
Cosmos Exploration | 22/12/22 | Jeremy Robinson | Buy | $0.19 | $49,819 | On-market trade | |
EV Resources | 22/12/22 | Adrian Paul | Buy | $0.02 | $45,000 | On-market trade |
Interesting observations
Core Lithium: selling 6 cent options
To add some more perspective, a combined 10 million options have been exercised by Core Lithium directors since mid November. The exercise price was just 6 cents – a return of around 1,560% compared to today's share price.
Source: Market Index
After making such an outsized return on investment, it would make sense to take a few chips off the table. But the timing couldn't come worse amid:
a selloff among lithium stocks. Core Lithium is down almost -50% from its 14 November high of $1.875.
broader market weakness. The S&P 500 finished the year down -19.4%, its worst calendar year since 2008.
weakness in EV sales. Tesla's Q4 vehicle deliveries of 405,278 missed analyst expectations of 427,000. Production outpaced deliveries by 8.5%, the highest since the first quarter of 2020.
Dip buying: MFF Investments, City Chic, Collins Food
The 12-month performance of these three stocks vary from bad to abysmal.
MFF Capital: -21.6%
Collins Food: -47.1%
City Chic -91.6%
Collins Food shares tanked -23.8% on 29 November after posting half-year revenue growth of 15% but net profit growth of -14.2%. Management warned that "significant inflationary headwinds are continuing in both markets, with margin pressure expected to remain for the balance of FY23."
City Chic has experienced several >10% dips throughout the year amid inventory issues, underwhelming sales growth and high cash burn. The stock fell -31.4% after a trading update on 20 December 2022, where management said they plan to ramp up promotional activity to drive demand resulting in further gross margin compression.
Meteoric Resources: loading up the rip
Meteoric Resource shares rallied 264% between 16 December 2022 and 3 January 2023. This was after the company announced the acquisition of a 'potential world class ionic clay rare earths project' in Brazil.
What's interesting is that the director decided to buy more shares during the run. At the 4 cent buy price, the stock had already rallied around 170% since the acquisition.
But at today's price of 5.6 cents, the same position is up a cool 30%.
Meteoric Resources (Source: TradingView)
