Viasat (VSAT -18.02%) stock tumbled 18.1% through 11:05 a.m. ET Tuesday -- but perhaps not for the reason you think.
Yesterday, T-Mobile (TMUS 0.25%) announced a new direct-to-cell satellite communications service in partnership with SpaceX Starlink, which is roiling the space satellites market. The move threatens Viasat's business model (I think), and is probably a good reason to be leery of Viasat stock.
But that's not why investors are selling Viasat stock today. They're selling because insider shareholders are selling.
As reported on the SEC's website last night, three major holders of Viasat stock have all filed notifications of significant stock sales:
In total, the three sales encompass 11.25 million shares of Viasat stock dumped on the market, which is about 8.8% of all Viasat stock outstanding. S&P Global notes that CPP, at least, is one of Viasat's five biggest shareholders, owning 8.5 million shares, and now we learn that it's selling roughly 44% of the Viasat shares it owns.
Why are these three big holders of Viasat stock selling, and are the sales related? In the case of the Canadian insider sales by the Ontario and Canada pension plans, I have a sneaking suspicion that the sales are related -- but why some obscure Luxembourger investor is selling at the same time, and selling the exact same amount, remains a mystery.
I also suspect, but cannot prove, that the sales may indicate worry among these shareholders that the T-Mobile-plus-Starlink tie-up is a bigger threat to Viasat than other investors yet appreciate. If I were a shareholder in unprofitable Viasat stock, I think I'd be getting a little bit nervous today, too.
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