Shares of Astra Space (NASDAQ:ASTR) stock are in full focus as CEO Chris Kemp recently disclosed an insider purchase of 250,000 shares at an average price of 47 cents per share.
Shares of the former special purpose acquisition company (SPAC) have gravitated back to Earth this year and are down more than 90% year-to-date. During Q3, the company reported revenue of $2.77 million, which was entirely driven by space products. As of Sept. 30, Astra has received a total of 237 orders for its Astra Spacecraft Engine, up 130% from June 30 of 2021. Still, Astra remains massively unprofitable and reported a net loss of $199.1 million for the quarter. In the current high-interest-rate environment, losses are being scrutinized more than ever. Kemp added:
“We have completed the build-out of our rocket production facility in Alameda, CA, including the provisioning of test infrastructure for the development of Launch System 2. We are also excited to welcome Airbus OneWeb Satellites, Maxar Technologies, and Astroscale as Astra Spacecraft Engine customers, among others.”
Let’s get into the details of his purchase.
ASTR Stock: CEO Chris Kemp Buys Shares
Following Kemp’s Dec. 16 purchase, he now directly owns a total of 1.08 million. On top of that, he indirectly owns 33,000 shares through his spouse. The December purchase was Kemp’s second of the year. The first occurred on Aug. 19 when he purchased 100,000 shares at an average price of $1.25 per share.
So, how do other insiders feel about the company? In the past year, Astra insiders have purchased 2.62 million shares and sold 11.02 million shares. That adds up to a net activity of 8.40 million shares sold. That doesn’t exactly convey a bullish image.
Meanwhile, the company experienced a management shakeup earlier this month. Astra announced that Chief Engineer Benjamin Lyon had resigned and would leave the company on Dec. 27. About a month before, Astra announced that it would lay off approximately 16% of its employees.
In October, Astra received a compliance notice from Nasdaq due to its shares trading below $1. The company has until April 4 of next year to regain the $1 mark and may be eligible to file a 180-day extension if the requirement is not met.
There are certainly a lot of negative factors affecting ASTR stock at the moment, although Kemp’s buy marks a much-needed splash of confidence for the company’s long-term potential.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.