Insiders At Terran Orbital Sold US$1.4m Of Stock Potentially Indicating Weakness

While Terran Orbital Corporation ( NYSE:LLAP ) shareholders have had a good week with the stock up 15%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell US$1.4m worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Terran Orbital

Terran Orbital Insider Transactions Over The Last Year

The Chief Technology Officer, Austin Williams, made the biggest insider sale in the last 12 months. It's important to mention that Austin Williams has recently left the company. However, our policy is to regard executives as insiders for a duration of 12 months after their departure.

That single transaction was for US$1.4m worth of shares at a price of US$2.15 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.40). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Austin Williams.

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!

I will like Terran Orbital better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Terran Orbital Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Terran Orbital. Senior Vice President of Corporate Development Jonathan Siegmann bought US$25k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Terran Orbital insiders own 21% of the company, worth about US$51m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Terran Orbital Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. Still, the insider transactions at Terran Orbital in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Terran Orbital. At Simply Wall St, we've found that Terran Orbital has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Terran Orbital 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.