Stock Analysis

This Insider Has Just Sold Shares In Rocket Lab USA

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NasdaqCM:RKLB
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Anyone interested in Rocket Lab USA, Inc. (NASDAQ:RKLB) should probably be aware that the CFO, Secretary & Treasurer, Adam Spice, recently divested US$258k worth of shares in the company, at an average price of US$4.46 each. That sale was 14% of their holding, so it does make us raise an eyebrow.

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Rocket Lab USA Insider Transactions Over The Last Year

Notably, that recent sale by CFO, Secretary & Treasurer Adam Spice was not the only time they sold Rocket Lab USA shares this year. They previously made an even bigger sale of -US$353k worth of shares at a price of US$5.74 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$4.46. So it may not tell us anything about how insiders feel about the current share price.

Rocket Lab USA insiders didn't buy any shares over the last year. 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!

insider-trading-volume
NasdaqCM:RKLB Insider Trading Volume December 3rd 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Rocket Lab USA

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of Rocket Lab USA shares, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Rocket Lab USA Tell Us?

Insiders sold Rocket Lab USA shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rocket Lab USA. Case in point: We've spotted 2 warning signs for Rocket Lab USA you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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