Luminar Technologies, Inc. (NASDAQ:LAZR) insiders placed bullish bets worth US$7.1m in the last 12 months – Simply Wall St
Stock Analysis
In the last year, multiple insiders have substantially increased their holdings of Luminar Technologies, Inc. (NASDAQ:LAZR) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
Check out our latest analysis for Luminar Technologies
Over the last year, we can see that the biggest insider sale was by the Independent Director, Jun Hong Heng, for US$2.7m worth of shares, at about US$14.03 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$7.90. So it may not shed much light on insider confidence at current levels. Jun Hong Heng was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$7.1m for 764.29k shares. But they sold 226.37k shares for US$3.2m. Overall, Luminar Technologies insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Over the last three months, we've seen significant insider buying at Luminar Technologies. Specifically, Independent Director Daniel Tempesta bought US$500k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
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. It's great to see that Luminar Technologies insiders own 30% of the company, worth about US$859m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us 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. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Luminar Technologies. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Luminar Technologies.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
Find out whether Luminar Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
Luminar Technologies, Inc., an automotive technology company, provides sensor technologies and software for passenger cars and commercial trucks in North America, the Asia Pacific, Europe, and the Middle East.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
Read more about these checks in the individual report sections or in our analysis model.
Slightly overvalued with limited growth.
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