We’d be surprised if Luminex Corporation (NASDAQ:LMNX) shareholders haven’t noticed that the Senior Vice President of Research & Development, Charles Collins, recently sold US$143k worth of stock at US$23.53 per share. That sale was 18% of their holding, so it does make us raise an eyebrow.
Luminex Insider Transactions Over The Last Year
Independent Chairman George Loewenbaum made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$18.14 each. Even though the purchase was made at a significantly lower price than the recent price (US$23.27), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Over the last year, we can see that insiders have bought 96.66k shares worth US$1.8m. But insiders sold 6090 shares worth US$143k. Overall, Luminex insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Luminex 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 Luminex 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Luminex insiders own about US$71m worth of shares. That equates to 6.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Luminex Insider Transactions Indicate?
An insider hasn’t bought Luminex stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we’re not overly bothered by recent selling. Of course, the future is what matters most. So if you are interested in Luminex, you should check out this free report on analyst forecasts for the company.
But note: Luminex may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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