Lumentum Holdings Falls To US$41.59, But Insiders Sold At Lower Price

Even though Lumentum Holdings Inc. (NASDAQ:LITE) has fallen by 15% over the past week , insiders who sold US$488k worth of stock over the past year have had less luck. Given that the average selling price of US$49.23 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Lumentum Holdings

The Last 12 Months Of Insider Transactions At Lumentum Holdings

The VP of Finance, Matthew Sepe, made the biggest insider sale in the last 12 months. That single transaction was for US$488k worth of shares at a price of US$49.23 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$41.59. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Matthew Sepe.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Lumentum Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Lumentum Holdings insiders own about US$33m worth of shares. That equates to 1.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Lumentum Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Lumentum Holdings insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lumentum Holdings. Every company has risks, and we've spotted 1 warning sign for Lumentum Holdings you should know about.

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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.

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