Yahoo Finance Insider Stock Buying Reaches US$2.80m On Lumen Technologies
Multiple insiders secured a larger position in Lumen Technologies, Inc. (NYSE:LUMN) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Lumen Technologies
The Last 12 Months Of Insider Transactions At Lumen Technologies
Over the last year, we can see that the biggest insider purchase was by President Kathleen Johnson for US$970k worth of shares, at about US$0.97 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Lumen Technologies insiders bought shares during the last year, they didn't sell. Their average price was about US$1.14. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Lumen Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Lumen Technologies Have Bought Stock Recently
Over the last quarter, Lumen Technologies insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$1.0m for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Lumen Technologies Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.1% of Lumen Technologies shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Lumen Technologies Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Lumen Technologies we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Lumen Technologies, you should check out this free report on analyst forecasts for the company.
But note: Lumen Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
