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Bullish Patagonia Lithium Insiders Loaded Up On AU$4.50m Of Stock

Simply Wall St · 5d ago

Quite a few insiders have dramatically grown their holdings in Patagonia Lithium Limited (ASX:PL3) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Patagonia Lithium Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Jose Manzano for AU$2.4m worth of shares, at about AU$0.08 per share. That means that an insider was happy to buy shares at above the current price of AU$0.063. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Patagonia Lithium insiders were buying shares, but not selling. They paid about AU$0.06 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Patagonia Lithium

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ASX:PL3 Insider Trading Volume January 6th 2026

Patagonia Lithium is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Patagonia Lithium insiders own 61% of the company, currently worth about AU$6.9m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Patagonia Lithium Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Patagonia Lithium insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Patagonia Lithium. While conducting our analysis, we found that Patagonia Lithium has 5 warning signs and it would be unwise to ignore them.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.