Lumentum Holdings falls to $41.59, but insiders sold at lower price

Although Lumentum Holdings Inc. (NASDAQ:LITE) has fallen 15% in the past week, insiders who sold $488,000 worth of shares in the past year were not so lucky. Since the average selling price of $49.23 is still below the current share price, insiders probably would have been better off holding on to their shares.

Although insider transactions are not the most important thing in long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.

Check out our latest analysis for Lumentum Holdings

The last 12 months of insider transactions at Lumentum Holdings

Chief Financial Officer Matthew Sepe made the largest insider sale in the last 12 months. This single transaction was for $488,000 worth of shares at a price of $49.23 per share. While insider selling is a negative, we see it as even more negative when shares are sold at a lower price. The good news is that this large sale was well above the current price of $41.59, so it may not tell us anything about how insiders feel about the current share price. The only single insider seller in 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, just click on the chart below!

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Does Lumentum Holdings have a high level of insider ownership?

Another way to test the alignment between a company’s leaders and other shareholders is to look at how many shares they own. I think it’s a good sign when insiders own a significant number of shares in the company. Lumentum Holdings insiders own about $33 million worth of shares, representing 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 say about Lumentum Holdings insiders?

There have been no insider transactions in the last three months – that doesn’t mean much. Our analysis of Lumentum Holdings’ insider transactions makes us cautious. But it is good to see that insiders own shares in the company. In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks Lumentum Holdings faces. Every company has risks, and we have 1 warning signal for Lumentum Holdings You should know about this.

If you would rather check out another company — one with potentially better financials — then don’t miss this free List of interesting companies with HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

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