Some Intuitive Machines, Inc. (NASDAQ:LUNR) shareholders may be a little concerned to see that the Co-Founder & Chairman, Kamal Ghaffarian, recently sold a substantial US$4.6m worth of stock at a price of US$6.08 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

Intuitive Machines Insider Transactions Over The Last Year

Notably, that recent sale by Co-Founder & Chairman Kamal Ghaffarian was not the only time they sold Intuitive Machines shares this year. Earlier in the year, they fetched US$4.00 per share in a -US$19m sale. That means that an insider was selling shares at slightly below the current price (US$7.47). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 57% of Kamal Ghaffarian's holding.

Intuitive Machines insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Intuitive Machines Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Intuitive Machines insiders own about US$36m worth of shares. That equates to 5.2% of the company. 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 Intuitive Machines Tell Us?

Insiders haven't bought Intuitive Machines stock in the last three months, but there was some selling. 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. 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. Case in point: We've spotted 5 warning signs for Intuitive Machines you should be aware of, and 1 of them shouldn't be ignored.

But note: Intuitive Machines 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.