Some of the best traders I know find great advantages in looking for market anomalies.

Be it unusual options activity, outsized “smart money” bets on a particular stock, or just notable relative or strength or weakness – seeing some stock attribute go far against the odds truly excites us. 

Market participants as a whole. 

At RagingBull, it is our mission to keep you aware of the most interesting and consequential anomalies out there, and I’m happy to report we have some truly interesting insider trading activity to share. 

Insiders have been loading the boat on this one name, seemingly against all odds – and this is something to be aware of!

Unusual Insider Buying Spree

Tracking insider activity is a trick as old as the game of trading itself.

It’s not a hard thing to do – every public company-involved official has to file paperwork relating to his or her acquisition or sales of the company’s stock. 

Needless to say, it’s always telling when the direct management tries hard to buy or sell shares of the company they work for.

And this is exactly what brings me to Luminar Technologies (LAZR)…

See, 2021 has seen great market gains… and countless insiders have used the opportunity to pack their pockets full of cash:

When it comes to LAZR stock, however, the picture has been quite the reverse…

And I mean truly the reverse – just look at the most recent insider transactions per nasdaq.com:

Heck, the company’s CEO bought another 65,000 shares just 2 days ago:

And if that’s not enough, here’s a summary of insider buys vs sells over the past 3 months:

Does that type of buying stand out to you, given that all of the market has been selling?

Stock Thoughts

Here’s the LAZR chart of the past 5 months:

The stock has been beaten down quite a lot, and there are several things to like here:

1. Insiders have been buying on the way down – a vote of confidence in the company’s future.
2. A good amount of shorts involved with over 12% short interest
3. If the stock catched as bid on this reversal – there’s a very clean level to trade against. 

I want to see the stock establish above $14 and advance above $15 for the bull thesis to be in play.

Should that happen, I think we can easily have a retest of the $19 area in the near term and possibly a lot higher!

Let’s see how this plays out over the next few days.