Lumos Diagnostics Holdings Reaches AU$53m Market Cap Benefiting Insider Stock Buying

Insiders who bought Lumos Diagnostics Holdings Limited (ASX:LDX) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$32m as a result of the stock's 154% gain over the same period. Put another way, the original US$113.0k acquisition is now worth US$243.8k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Lumos Diagnostics Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Peter Constable bought AU$78k worth of shares at a price of AU$0.031 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.071. 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 Lumos Diagnostics Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Lumos Diagnostics Holdings

Lumos Diagnostics Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Lumos Diagnostics Holdings

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. From our data, it seems that Lumos Diagnostics Holdings insiders own 5.4% of the company, worth about AU$2.9m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Lumos Diagnostics Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Lumos Diagnostics Holdings stock. 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. Be aware that Lumos Diagnostics Holdings is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

Of course Lumos Diagnostics Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.