In This Article:
Many Raytheon Technologies Corporation (NYSE:RTX) 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.
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.
See our latest analysis for Raytheon Technologies
Raytheon Technologies Insider Transactions Over The Last Year
The insider, Wesley Kremer, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$93.92 each. That means that even when the share price was below the current price of US$99.30, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 16% of Wesley Kremer's holding.
All up, insiders sold more shares in Raytheon 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Raytheon Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Raytheon Technologies insiders own about US$133m worth of shares (which is 0.09% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Raytheon Technologies Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Raytheon Technologies shares in the last quarter. While we feel good about high insider ownership of Raytheon Technologies, we can't say the same about the selling of shares. 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. At Simply Wall St, we found 1 warning sign for Raytheon Technologies that deserve your attention before buying any shares.