Quite a few Joby Aviation, Inc. (NYSE:JOBY) insiders sold their shares over the past year, which may be a cause for concern.   Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations.  However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.    

While insider transactions are not the most important thing when it comes to long-term investing,  logic dictates you should pay some attention to whether insiders are buying or selling shares.

Joby Aviation Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, JoeBen Bevirt, for US$268k worth of shares, at about US$9.50 per share.   We generally don't like to see insider selling, but the lower the sale price, the more it concerns us.  The silver lining is that this sell-down took place above the latest price (US$5.19).  So it is hard to draw any strong conclusion from it.  

Joby Aviation insiders didn't buy any shares over the last year.    The chart below shows insider transactions (by companies and individuals) over the last year.  By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:JOBY Insider Trading Volume May 10th 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Joby Aviation Have Sold Stock Recently  

The last three months saw significant insider selling at Joby Aviation.  In total,   Founder  JoeBen Bevirt  sold US$148k 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 Joby Aviation

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  We usually like to see fairly high levels of insider ownership.   Joby Aviation insiders own about US$786m worth of shares (which is 23% of the company).  I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.  

So What Do The Joby Aviation Insider Transactions Indicate?

An insider hasn't  bought Joby Aviation stock in the last three months, but there was some selling.     Looking to the last twelve months, our data doesn't show any insider buying.    The company boasts high insider ownership, but we're a little hesitant, given the history of share sales.      So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.    At Simply Wall St, we've found that Joby Aviation has 4 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.  

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.

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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.