Are Insiders Too Confident In Lithium Americas Cor
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Posted On: 01/09/2018 8:23:29 AM
Are Insiders Too Confident In Lithium Americas Corp (TSE:LAC)?
Austin Wood January 8, 2018
Lithium Americas Corp., a resource company, engages in the acquisition, exploration, and development of mineral properties in Nevada. Lithium Americas is one of Canada’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in 35,000 shares during this period. Generally, insiders buying more shares in their own firm sends a bullish signal. The MIT Press (1998) published an article showing that stocks following insider buying outperformed the market by 4.5%. But these signals may not be sufficient to gain confidence on whether to invest. I’ve assessed two potential reasons behind the insiders’ latest motivation to buy more shares.
Who Are Ramping Up Their Shares?
Over the past three months, more shares have been bought than sold by Lithium Americas’s’ insiders. In total, individual insiders own over 39 million shares in the business, which makes up around 43.53% of total shares outstanding. The following insiders have recently increased their company holdings:
Name Management Board Total Annual Compensation
Gabriel Rubacha ✔ ✔ $82,785
Jonathan Evans ✔
Is Future Growth Outlook As Bullish?
Analysts’ expectations for earnings over the next 3 years of 52.77% provides an upbeat outlook going forward which is consistent with the signal company insiders are sending with their net buying activity. Digging deeper into the line items,Lithium Americas is believed to experience a sizeable revenue growth over the next year, which is expected to drive an earnings growth rate of 18.50%. Improved cost management and sustained high revenue growth could lead to higher earnings growth in the future. Insiders’ conviction in this potential improvement is evidenced by their net buying activity. Or else they may simply deem the company as undervalued by the market based on future growth it could produce.
Austin Wood January 8, 2018
Lithium Americas Corp., a resource company, engages in the acquisition, exploration, and development of mineral properties in Nevada. Lithium Americas is one of Canada’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in 35,000 shares during this period. Generally, insiders buying more shares in their own firm sends a bullish signal. The MIT Press (1998) published an article showing that stocks following insider buying outperformed the market by 4.5%. But these signals may not be sufficient to gain confidence on whether to invest. I’ve assessed two potential reasons behind the insiders’ latest motivation to buy more shares.
Who Are Ramping Up Their Shares?
Over the past three months, more shares have been bought than sold by Lithium Americas’s’ insiders. In total, individual insiders own over 39 million shares in the business, which makes up around 43.53% of total shares outstanding. The following insiders have recently increased their company holdings:
Name Management Board Total Annual Compensation
Gabriel Rubacha ✔ ✔ $82,785
Jonathan Evans ✔
Is Future Growth Outlook As Bullish?
Analysts’ expectations for earnings over the next 3 years of 52.77% provides an upbeat outlook going forward which is consistent with the signal company insiders are sending with their net buying activity. Digging deeper into the line items,Lithium Americas is believed to experience a sizeable revenue growth over the next year, which is expected to drive an earnings growth rate of 18.50%. Improved cost management and sustained high revenue growth could lead to higher earnings growth in the future. Insiders’ conviction in this potential improvement is evidenced by their net buying activity. Or else they may simply deem the company as undervalued by the market based on future growth it could produce.
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