This Insider Has Just Sold Shares In Rocket Lab USA

We'd be surprised if Rocket Lab USA, Inc. (NASDAQ:RKLB) shareholders haven't noticed that the CFO, Secretary & Treasurer, Adam Spice, recently sold US$435k worth of stock at US$6.96 per share. The eyebrow raising move amounted to a reduction of 11% in their holding.

Check out our latest analysis for Rocket Lab USA

The Last 12 Months Of Insider Transactions At Rocket Lab USA

Notably, that recent sale by Adam Spice is the biggest insider sale of Rocket Lab USA shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$6.09. So it is hard to draw any strong conclusion from it.

Rocket Lab USA insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Rocket Lab USA better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Rocket Lab USA insiders own 0.4% of the company, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Rocket Lab USA Insider Transactions Indicate?

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. While insiders do own shares, they don't own a heap, and they have been selling. 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. You'd be interested to know, that we found 3 warning signs for Rocket Lab USA and we suggest you have a look.

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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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.