The Orocobre Limited (ASX:ORE) share price is on the move on Thursday. Here’s what you need to know…
The post Here’s why the Orocobre (ASX:ORE) share price is on the move today appeared first on The Motley Fool Australia. –
It has been yet another very strong day for Australia’s leading lithium miners.
Investors have continued to pile into the industry on Thursday and have driven their shares notably higher.
For example, at the time of writing, the Galaxy Resources Limited (ASX: GXY) share price is up 8% and the Pilbara Minerals Ltd (ASX: PLS) share price is up 7.5%. Both have hit 52-week highs at one stage today.
This has been driven by optimism over lithium prices thanks to growing electric vehicle adoption and President-elect Joe Biden’s favourable policies on clean energy and renewable technology.
What about the Orocobre share price?
The Orocobre Limited (ASX: ORE) share price also climbed to a 52-week high on Thursday before fading as the day went on.
The softening of its shares today appears to have been caused by the release of a change of director’s interest notice this afternoon.
That notice revealed that its non-executive director, Richard Seville, has taken advantage of the recent rise in the Orocobre share price to offload some shares.
According to the notice, Mr Seville sold 208,656 shares through an on-market trade on 31 December. The director received a total consideration of $939,080.11 for the parcel of shares, which equates to an average of approximately $4.50 per share.
However, it is worth noting that the director still has a considerable holding, which means his interests are still firmly aligned with shareholders.
Following this sale, Mr Seville owned a total of 5,333,953 Orocobre shares. Which, based on the current Orocobre share price of $5.04, have a market value of just under $27 million today.
Where next for the Orocobre share price?
One broker that believes the Orocobre share price has now peaked is Ord Minnett. Last month its analysts put a hold rating and $3.45 price target on its shares.
While it believes lithium prices have now bottomed, it isn’t as positive as the market on near term demand. Especially given the significant latent short term supply.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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 Bruce Jackson.