Possible turnaround for Luminar Technologies, Inc. (NASDAQ:LAZR) insiders, still down US$1.1m after a US$7.1m shopping spree
Insiders who bought US$7.1m worth of Luminar Technologies, Inc. (NASDAQ:LAZR) stock in the last year recovered part of their losses as the stock rose by 9.2% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$1.1m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Luminar Technologies
The Last 12 Months Of Insider Transactions At Luminar Technologies
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Jun Hong Heng, sold US$2.7m worth of shares at a price of US$14.03 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$7.83). So it may not tell us anything about how insiders feel about the current share price. Jun Hong Heng was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 764.29k shares worth US$7.1m. But insiders sold 226.37k shares worth US$3.2m. In the last twelve months there was more buying than selling by Luminar Technologies insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.
Luminar Technologies Insiders Bought Stock Recently
It's good to see that Luminar Technologies insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$999k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of Luminar Technologies
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Luminar Technologies insiders own 30% of the company, worth about US$859m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Luminar Technologies Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Luminar Technologies insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Luminar Technologies. You'd be interested to know, that we found 2 warning signs for Luminar Technologies and we suggest you have a look.
Of course Luminar Technologies 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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