Insiders who bought Lumen Technologies, Inc. (NYSE:LUMN) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$1.1b as a result of the stock's 17% gain over the same period. As a result, the stock they originally bought for US$1.33m is now worth US$7.28m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Lumen Technologies

Lumen Technologies Insider Transactions Over The Last Year

The President Kathleen Johnson made the biggest insider purchase in the last 12 months. That single transaction was for US$960k worth of shares at a price of US$1.28 each. Even though the purchase was made at a significantly lower price than the recent price (US$7.48), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Lumen Technologies insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Lumen Technologies Insiders Bought Stock Recently

We saw some Lumen Technologies insider buying shares in the last three months. Independent Director James Fowler shelled out US$47k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Lumen Technologies insiders own about US$154m worth of shares (which is 2.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Lumen Technologies Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Lumen Technologies insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lumen Technologies. Case in point: We've spotted 2 warning signs for Lumen Technologies you should be aware of, and 1 of these is concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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

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.