This Insider Has Just Sold Shares In Luminar Technologies

Anyone interested in Luminar Technologies, Inc. (NASDAQ:LAZR) should probably be aware that the Chief Legal Officer & Secretary, Alan Prescott, recently divested US$235k worth of shares in the company, at an average price of US$5.57 each. On the bright side, that sale was only 7.0% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Luminar Technologies

Luminar Technologies Insider Transactions Over The Last Year

The Founder Austin Russell made the biggest insider purchase in the last 12 months. That single transaction was for US$8.9m worth of shares at a price of US$6.26 each. That means that even when the share price was higher than US$5.33 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 3.65m shares worth US$22m. But insiders sold 114.45k shares worth US$726k. In the last twelve months there was more buying than selling by Luminar Technologies insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Luminar Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Luminar Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Luminar Technologies insiders own 28% of the company, currently worth about US$583m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Luminar Technologies Insiders?

Insiders sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 5 warning signs with Luminar Technologies and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.