Luminar: Not The Best Buyback

Summary

  • Luminar announced plans to repurchase $250 million worth of stock along with planned insider purchases.
  • Oddly, the company sold at least $550 million worth of convertible debt to fund the buybacks.
  • The stock trades at over 7x '25 sales targets, suggesting now isn't the time for aggressive share buybacks while borrowing cash.
  • Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More »
Luminar technology sign is seen outside their headquarters in Orlando, Florida, USA on February 8, 2020.

JHVEPhoto/iStock Editorial via Getty Images

Over the last few weeks, a few Lidar sensor companies have made moves to raise funds including valuation leader Luminar Technologies (NASDAQ:LAZR). The sector is far more appealing now after a year of several companies being public with

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