The fact that multiple L3Harris Technologies, Inc. (NYSE:LHX) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for L3Harris Technologies

The Last 12 Months Of Insider Transactions At L3Harris Technologies

The insider, Scott Mikuen, made the biggest insider sale in the last 12 months. That single transaction was for US$2.4m worth of shares at a price of US$230 each. That means that even when the share price was below the current price of US$246, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 18% of Scott Mikuen's holding.

All up, insiders sold more shares in L3Harris 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 L3Harris Technologies Have Sold Stock Recently

The last three months saw significant insider selling at L3Harris Technologies. Specifically, insider Ross Niebergall ditched US$1.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of L3Harris Technologies

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. It's great to see that L3Harris Technologies insiders own 0.5% of the company, worth about US$227m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.