In the last year, many L3Harris Technologies, Inc. (NYSE:LHX) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for L3Harris Technologies

L3Harris Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President of Space & Airborne Systems, Edward Zoiss, sold US$1.1m worth of shares at a price of US$212 per share. That means that even when the share price was slightly below the current price of US$214, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 16% of Edward Zoiss's holding.

In total, L3Harris Technologies insiders sold more than they bought 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 growing companies that insiders are buying.

Insiders At L3Harris Technologies Have Sold Stock Recently

There was substantially more insider selling, than buying, of L3Harris Technologies shares over the last three months. In total, insiders sold US$2.1m worth of shares in that time. On the other hand we note insider William Swanson bought US$536k worth of shares , as previously mentioned . Generally this level of net selling might be considered a bit bearish.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. L3Harris Technologies insiders own 0.5% of the company, currently worth about US$206m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At L3Harris Technologies Tell Us?

Unfortunately, there has been more insider selling of L3Harris Technologies stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since L3Harris Technologies is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that L3Harris Technologies has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.