Executive VP Of AST SpaceMobile Sold 25% Of Their Shares

Some AST SpaceMobile, Inc. (NASDAQ:ASTS) shareholders may be a little concerned to see that the Executive VP, Andrew Johnson, recently sold a substantial US$1.0m worth of stock at a price of US$52.48 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

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AST SpaceMobile Insider Transactions Over The Last Year

The Executive VP & COO, Shanti Gupta, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$25.83 each. That means that even when the share price was below the current price of US$48.95, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 29% of Shanti Gupta's stake.

In total, AST SpaceMobile 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!

See our latest analysis for AST SpaceMobile

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. AST SpaceMobile insiders own about US$86m worth of shares. That equates to 0.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At AST SpaceMobile Tell Us?

Insiders sold AST SpaceMobile shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. Our analysis shows 4 warning signs for AST SpaceMobile (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

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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.