This Insider Has Just Sold Shares In Luxfer Holdings

Investors may wish to note that the Managing Director of Luxfer MEL Technologies of Luxfer Holdings PLC, Graham Wardlow, recently netted US$70k from selling stock, receiving an average price of US$10.83. It wasn't a huge sale, but it did reduce their holding by 15%. This does not instill confidence.

See our latest analysis for Luxfer Holdings

The Last 12 Months Of Insider Transactions At Luxfer Holdings

The Independent Chairman of the Board Patrick Mullen made the biggest insider purchase in the last 12 months. That single transaction was for US$98k worth of shares at a price of US$8.37 each. Even though the purchase was made at a significantly lower price than the recent price (US$11.22), we still think insider buying is a positive. 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.

Happily, we note that in the last year insiders paid US$158k for 18.74k shares. On the other hand they divested 6.50k shares, for US$70k. In total, Luxfer Holdings insiders bought more than they sold over the last year. 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!

Luxfer 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 Luxfer Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.0% of Luxfer Holdings shares, worth about US$6.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Luxfer Holdings Insider Transactions Indicate?

An insider hasn't bought Luxfer Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. But we'd like it if insiders owned more stock, overall. So the company doesn't look great on this analysis. 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. Case in point: We've spotted 2 warning signs for Luxfer Holdings you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.