Those following along with Luminex Corporation (NASDAQ:LMNX) will no doubt be intrigued by the recent purchase of shares by George Loewenbaum, Independent Chairman of the company, who spent a stonking US$1.5m on stock at an average price of US$18.00. While that only increased their holding size by 4.3%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Luminex
Notably, that recent purchase by George Loewenbaum is the biggest insider purchase of Luminex shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$18.37. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Luminex share holders is that insiders were buying at near the current price.
While Luminex insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Luminex Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Luminex insiders own about US$55m worth of shares. That equates to 6.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Luminex Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Luminex shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Luminex.
Of course Luminex may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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