Stock Analysis

President of Luxfer Magtech James Gardella Just Sold A Bunch Of Shares In Luxfer Holdings PLC (NYSE:LXFR)

NYSE:LXFR
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Anyone interested in Luxfer Holdings PLC (NYSE:LXFR) should probably be aware that the President of Luxfer Magtech, James Gardella, recently divested US$429k worth of shares in the company, at an average price of US$21.35 each. That sale was 36% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Luxfer Holdings

Luxfer Holdings Insider Transactions Over The Last Year

Notably, that recent sale by James Gardella is the biggest insider sale of Luxfer Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$21.09. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Luxfer Holdings insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:LXFR Insider Trading Volume March 20th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Luxfer Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Luxfer Holdings insiders own about US$10m worth of shares. That equates to 1.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Luxfer Holdings Insider Transactions Indicate?

An insider sold Luxfer Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Luxfer Holdings is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Luxfer Holdings you should know about.

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.

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This article by Simply Wall St is general in nature. 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.
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About NYSE:LXFR

Luxfer Holdings

Designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications.

Flawless balance sheet with moderate growth potential.