In This Article:
Over the past year, many Lockheed Martin Corporation (NYSE:LMT) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. 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, we do think it is perfectly logical to keep tabs on what insiders are doing.
Lockheed Martin Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President of Rotary & Mission Systems, Stephanie Hill, for US$2.1m worth of shares, at about US$443 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$468. 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 26% of Stephanie Hill's stake.
In the last year Lockheed Martin insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Lockheed Martin
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.
Insiders At Lockheed Martin Have Sold Stock Recently
The last three months saw significant insider selling at Lockheed Martin. Specifically, insiders ditched US$3.9m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Lockheed Martin 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.07% of Lockheed Martin shares, worth about US$79m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.