Have Insiders Sold Lumen Technologies, Inc. (NYSE:LUMN) Shares Recently?

By
Simply Wall St
Published
March 11, 2021
NYSE:LUMN

We note that the Lumen Technologies, Inc. (NYSE:LUMN) Independent Director, Virginia Boulet, recently sold US$92k worth of stock for US$14.22 per share. However we note that the sale only shrunk their holding by 7.8%.

See our latest analysis for Lumen Technologies

Lumen Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive VP & CFO Indraneel Dev for US$270k worth of shares, at about US$9.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.88), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 75.27k shares for US$704k. But they sold 16.77k shares for US$197k. In the last twelve months there was more buying than selling by Lumen Technologies insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:LUMN Insider Trading Volume March 11th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Lumen Technologies insiders own 0.9% of the company, worth about US$138m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Lumen Technologies Insiders?

Insiders sold Lumen Technologies shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. 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 3 warning signs with Lumen Technologies and understanding these should be part of your investment process.

But note: Lumen Technologies 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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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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