Big things may be afoot for Joby Aviation (NYSE:JOBY), including new partnerships, but one company insider has decided to offload a sizable chunk of shares. Recent filings from the Securities and Exchange Commission (SEC) show that Dipender Saluja, a partner and managing director of Joby investor Capricorn Investment Group made two large sales earlier this month.
According to the Form 4 filing, Saluja offloaded 119,001 shares of JOBY stock on both Dec. 6 and Dec. 8. This adds up to a total of 238,002 shares sold in the final month of 2023. At the time of the sales, JOBY stock was trading at $6.43 and $6.52 per share, respectively.
Does this mean that Saluja is losing faith in Joby at a time when the electric vertical takeoff and landing (eVTOL) industry is poised to take off in 2024? Let’s take a closer look at this development and assess what this means for investors.
What’s Happening With JOBY Stock
Both sales took place last week. JOBY stock remains in the green for the past five days. However, it isn’t off to a good start today. As of this writing, it is down 1.5%, though its current trajectory suggests a rebound is possible. Despite an overall impressive performance over the past month, Joby is still down for the past two quarters.
Now Saluja’s decision to sell may cause some investors to wonder if the insider has doubts about Joby’s future. However, it should be noted that he still owns 28,686,247 shares of JOBY stock. It’s clear that he hasn’t given up entirely. The more likely reason for the sale is that Saluja is trying to make room for other investments, which often means trimming a position.
It should also be noted that institutional investment in Joby remains generally high. Data from Whale Wisdom shows that the number of funds holding JOBY stock has risen 13% over the most recent quarter. On top of that, the number of increased positions has jumped 40%. It’s put-call ratio has also dropped significantly, indicating that bearish sentiment toward the company is declining.
Ready for Takeoff
When a company insider starts offloading shares, it’s easy to wonder if worse days are ahead. But in the case of Joby, investors shouldn’t be too worried. The company is focused on growth and seems to be making good progress on multiple fronts. As InvestorPlace contributor Chris MacDonald reports:
“Joby has made remarkable progress, completing 84% of the U.S. Federal Aviation Administration’s (FAA) Stage 3 certification requirements. The company’s 2025 roadmap includes launching a commercial service, signaling a new era in urban air mobility.”
With strong institutional backing and important partnerships that are likely to drive growth in the new year, JOBY stock is well-positioned to keep rising and make up the ground it lost in 2023, even if insider sales persist.
On the date of publication, Samuel O’Brient 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.
