We wouldn't blame Planet Labs PBC (NYSE:PL) shareholders if they were a little worried about the fact that Robert Schingler, the Co-Founder recently netted about US$1.7m selling shares at an average price of US$25.92. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Planet Labs PBC

In the last twelve months, the biggest single sale by an insider was when the President & CFO, Ashley Whitfield Johnson, sold US$7.0m worth of shares at a price of US$35.22 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$25.56. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Planet Labs PBC 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!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Planet Labs PBC insiders own about US$694m worth of shares (which is 7.5% 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 Does This Data Suggest About Planet Labs PBC Insiders?

An insider sold Planet Labs PBC shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

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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.

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.