Insiders who bought Lumen Technologies, Inc. (NYSE:LUMN) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$1.0b as a result of the stock's 16% gain over the same period. In other words, the original US$2.85m purchase is now worth US$18.0m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Lumen Technologies
In the last twelve months, the biggest single purchase by an insider was when President Kathleen Johnson bought US$970k worth of shares at a price of US$0.97 per share. We do like to see buying, but this purchase was made at well below the current price of US$7.28. 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.
In the last twelve months Lumen Technologies insiders were buying shares, but not selling. Their average price was about US$1.15. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Lumen Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Lumen Technologies Insiders Bought Stock Recently
We saw some Lumen Technologies insider buying shares in the last three months. Independent Director James Fowler bought US$47k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership Of Lumen Technologies
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Lumen Technologies insiders own 2.2% of the company, currently worth about US$147m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Lumen Technologies Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Lumen Technologies insiders feel good about the company's future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Lumen Technologies (of which 1 is significant!) you should know about.
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.