Down 70%: An insider just loaded up on this ASX 300 lithium share

Vulcan Energy Resources Ltd (ASX: VUL) shares have managed to avoid another lithium selloff on Tuesday.

In afternoon trade, the ASX 300 lithium share is up 1% to $2.03.

As a comparison, Arcadium Lithium (ASX: LTM) shares are down 5%, Pilbara Minerals Ltd (ASX: PLS) shares are down 2%, and Core Lithium Ltd (ASX: CXO) shares are down 3%.

Why is this ASX 300 share rising?

Investors appear to have been buying the Germany-based lithium developer’s shares today in response to news of some insider buying.

Insider buying is often seen as a bullish indicator as few should know the intrinsic value of a company than its directors.

According to the change of director’s interest notice, the company’s non-executive director Josephine Bush has added to her holding.

The notice reveals that Ms Bush picked up 14,200 Vulcan shares through an on-market trade on Monday. This boosted the non-executive director’s holding by 54% to 40,367 units.

In addition, it was revealed that Ms Bush paid a slightly higher price that where the ASX 300 share trade today. She paid an average of $2.045 per Vulcan share, which equates to a total consideration of $29,039.

Is this good news?

While this isn’t the largest insider buying you will see, it is still likely to be interpreted as a positive by the market.

And there haven’t been many of them in recent times.

Due largely to the falling lithium price, this ASX 300 share is down by a whopping 71% over the last 12 months.

Investors appear concerned what prices the company’s Zero Carbon Lithium project will be dealing with when it finally commences operations in 2025.

Though, with its costs estimated by management to be “one of the lowest on the industry cost curve and despite inflation,” it may be better placed than most.

The post Down 70%: An insider just loaded up on this ASX 300 lithium share appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Arcadium Lithium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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