Yahoo Finance L3Harris Technologies Insiders Sell US$3.0m Of Stock, Possibly Signalling Caution
Many L3Harris Technologies, Inc. (NYSE:LHX) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View 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 an insider was selling shares at slightly below the current price (US$225). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 16% of Edward Zoiss's stake.
In total, L3Harris Technologies insiders sold more 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insiders At L3Harris Technologies Have Sold Stock Recently
We've seen more insider selling than insider buying at L3Harris Technologies recently. We note Senior VP Scott Mikuen cashed in US$989k worth of shares. Meanwhile insider William Swanson bought US$536k worth , as we said above . Generally this level of net selling might be considered a bit bearish.
Does L3Harris Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that L3Harris Technologies insiders own 0.5% of the company, worth about US$217m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, L3Harris Technologies makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Our analysis shows 2 warning signs for L3Harris Technologies (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
