We wouldn't blame L3Harris Technologies, Inc. (NYSE:LHX) shareholders if they were a little worried about the fact that Sean Stackley, the Senior Vice President of Strategy recently netted about US$1.5m selling shares at an average price of US$217. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At L3Harris Technologies
Notably, that recent sale by Sean Stackley is the biggest insider sale of L3Harris Technologies shares that we've seen in the last year. That means that even when the share price was below the current price of US$222, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 32% of Sean Stackley's stake.
All up, insiders sold more shares in L3Harris Technologies than they bought, over the last year. 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!
I will like L3Harris Technologies 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.
Does L3Harris Technologies Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that L3Harris Technologies insiders own 0.5% of the company, worth about US$213m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About L3Harris Technologies Insiders?
An insider hasn't bought L3Harris Technologies stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that L3Harris Technologies is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for L3Harris Technologies (1 can't be ignored) you should be aware of.
But note: L3Harris Technologies 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.
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