IGO Ltd (ASX: IGO) shares have taken a real beating over the last 12 months.
During this time, the ASX lithium stock has lost over 40% of its value. As a comparison, the ASX 200 index is up approximately 6% over the same period.
It appears that the company's directors believe the selling has been overdone.
That's because no less than four of them have been picking up IGO shares this month.
Insiders buying this ASX lithium stock
According to a series of change of director's interest notices, the four directors dipped into the market a day after the release of the company's half-year results last week.
The largest purchase came from the ASX lithium stock's new CEO, Ivan Vella.
Vella, who has been in the top job since December, made two purchases of 35,000 and 6,500 shares on 23 February through on-market trades. This represented investments of $254,569.18 and $47,283.18, respectively.
Also making a large investment in IGO shares was the company's chair, Michael Nossal. He snapped up 25,000 IGO shares through an on-market trade on the same day for a total consideration $180,840.46.
Non-executive director, Debra Bakker, also made a sizeable investment. She picked up 7,000 shares for a total consideration of $50,400.00 through an on-market trade on 23 February.
Finally, fellow non-executive director, Tracey Arlaud, bought 3,093 shares through an on-market trade the same day. Arlaud paid a total of US$14,722.68 according to the notice.
Should you buy?
Insider buying is often regarded as a bullish indicator. After all, who know a company better than those inside its c-suites.
Goldman Sachs is likely to be supportive of the aforementioned purchases. Last week, the broker retained its buy rating with an $8.00 price target.
