Daniel Farb Buys 22% More Lumos Pharma Shares \

Investors who take an interest in Lumos Pharma, Inc. (NASDAQ:LUMO) should definitely note that insider Daniel Farb recently paid US$3.90 per share to buy US$455k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 22%.

See our latest analysis for Lumos Pharma

The Last 12 Months Of Insider Transactions At Lumos Pharma

Notably, that recent purchase by Daniel Farb is the biggest insider purchase of Lumos Pharma shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.77). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Daniel Farb was also the biggest seller.

Over the last year, we can see that insiders have bought 129.45k shares worth US$551k. But they sold 5.00k shares for US$18k. Overall, Lumos Pharma insiders were net buyers during the last year. You can see the insider transactions (by companies and 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Lumos Pharma insiders own 19% of the company, worth about US$5.8m. 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 Does This Data Suggest About Lumos Pharma Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Lumos Pharma insiders are well aligned, and that they may think the share price is too low. While we like knowing 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. You'd be interested to know, that we found 3 warning signs for Lumos Pharma and we suggest you have a look.

But note: Lumos Pharma 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. 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.

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