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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Lumos Diagnostics Holdings Limited (ASX:LDX), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Lumos Diagnostics Holdings
The Last 12 Months Of Insider Transactions At Lumos Diagnostics Holdings
Over the last year, we can see that the biggest insider purchase was by insider Peter Constable for AU$78k worth of shares, at about AU$0.031 per share. That means that an insider was happy to buy shares at above the current price of AU$0.03. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Lumos Diagnostics Holdings 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. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Lumos Diagnostics Holdings Insiders Bought Stock Recently
It's good to see that Lumos Diagnostics Holdings insiders have made notable investments in the company's shares. In total, insiders bought AU$113k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Lumos Diagnostics Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own AU$465k worth of Lumos Diagnostics Holdings stock, about 2.1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.