In This Article:
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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Lumen Technologies Insider Transactions Over The Last Year
The President Kathleen Johnson made the biggest insider purchase in the last 12 months. That single transaction was for US$960k worth of shares at a price of US$1.28 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Lumen Technologies insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Lumen Technologies
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.
Does Lumen Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lumen Technologies insiders own 7.9% of the company, currently worth about US$262m 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?
It doesn't really mean much that no insider has traded Lumen Technologies shares in the last quarter. 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. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Lumen Technologies.