Last week, Luxfer Holdings PLC (NYSE:LXFR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 20% last week, resulting in a US$53m increase in the company's market worth, implying a 38% gain on their initial purchase. As a result, their original purchase of US$158.3k worth of stock is now worth US$219.2k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Luxfer Holdings

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Patrick Mullen for US$98k worth of shares, at about US$8.37 per share. We do like to see buying, but this purchase was made at well below the current price of US$11.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Luxfer Holdings insiders bought shares during the last year, they didn't sell. 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, simply click on the graph below!

Luxfer Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Luxfer Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Luxfer Holdings insiders own about US$5.7m worth of shares (which is 1.9% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Luxfer Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Luxfer Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Luxfer Holdings insiders bought more shares in the company. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Luxfer Holdings.

But note: Luxfer Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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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.