A Lucira Health, Inc. (NASDAQ:LHDX) insider increased their holdings by 11% last year

Insiders were net buyers of Lucira Health, Inc.'s (NASDAQ:LHDX ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Lucira Health

The Last 12 Months Of Insider Transactions At Lucira Health

Over the last year, we can see that the biggest insider purchase was by President Erik Engelson for US$90k worth of shares, at about US$3.00 per share. That means that an insider was happy to buy shares at around the current price of US$3.18. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Erik Engelson was the only individual insider to buy shares in the last twelve months.

Erik Engelson bought a total of 40.00k shares over the year at an average price of US$2.62. 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. 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).

Insiders At Lucira Health Have Sold Stock Recently

We've seen more insider selling than insider buying at Lucira Health recently. In that time, insiders dumped US$88k worth of shares. On the other hand we note President Erik Engelson bought US$15k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Does Lucira Health Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$4.8m worth of Lucira Health stock, about 3.8% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Lucira Health Insiders?

Unfortunately, there has been more insider selling of Lucira Health stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lucira Health. When we did our research, we found 3 warning signs for Lucira Health (1 doesn't sit too well with us!) that we believe deserve your full attention.

But note: Lucira Health 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.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here