Matthew Simoncini, a director at Luminar Technology (LAZR), recently added 10,000 shares. The buy increased his holdings by 28 percent, and came to a total cost just over $160,000.
This is the second buy from the director in as many weeks, following a 4,355 share buy in mid-December for just under $66,000. A number of other directors and the company CFO have been buyers in the past few weeks.
Overall, insiders own 16.7 percent of company shares.
The buys have come in as shares of the vehicle sensor and software company have shed over 50 percent since going public earlier this year.
While the company is still in its early stages and remains unprofitable as it’s growing, revenue has jumped 89 percent in the past year. And the company has over $500 million in net cash on the books to keep growing out the business in the years ahead.
Action to take: Shares seem to be finding some support around these prices, and large insider buys here, from a group that already has a large stake, are a good sign that a rebound could be likely in the months ahead. That makes the stock look like an attractive speculation, even as it’s years away from paying a dividend.
For traders, the May $22.50 call, last going for about $1.25, looks like an inexpensive way to play a further rally higher in shares in the months ahead. Traders should look for mid-to-high double-digit gains before taking profits.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.