Lockheed Martin Insiders Sold US$12m Of Shares Suggesting Hesitancy \
The fact that multiple Lockheed Martin Corporation (NYSE:LMT) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Lockheed Martin
The Last 12 Months Of Insider Transactions At Lockheed Martin
In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer, Frank St. John, sold US$3.2m worth of shares at a price of US$474 per share. So we know that an insider sold shares at around the present share price of US$464. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year we saw more insider selling of Lockheed Martin shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders At Lockheed Martin Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Lockheed Martin. In total, insider Stephanie Hill sold US$1.2m worth of shares in that time. Meanwhile insider John Donovan bought US$251k worth. Generally this level of net selling might be considered a bit bearish.
Insider Ownership Of Lockheed Martin
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. It appears that Lockheed Martin insiders own 0.08% of the company, worth about US$96m. 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 Lockheed Martin Tell Us?
The stark truth for Lockheed Martin is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Lockheed Martin you should know about.
Of course Lockheed Martin may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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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.
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