Viasat (NASDAQ: VSAT) stock tumbled 18.1% through 11:05 a.m. ET Tuesday -- but perhaps not for the reason you think.
Yesterday, T-Mobile (NASDAQ: TMUS) 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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
But that's not why investors are selling Viasat stock today. They're selling because insider shareholders are selling.
Viasat's great Canadian (and Luxembourger) stock dump
As reported on the SEC's website last night, three major holders of Viasat stock have all filed notifications of significant stock sales:
- Luxembourg company Triton Luxtopholding Sarl announced the sale of 3.75 million shares of Viasat.
- The Ontario Teachers' Pension Plan Board announced the sale of an identical 3.75 million-share stake.
- Finally, CPP Investment Board Private Holdings, which, according to S&P Global Market Intelligence, is a subsidiary of the Canada Pension Plan Investment Board, is selling -- you guessed it -- 3.75 million shares.
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.
Is Viasat stock a sell?
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.
Should you invest $1,000 in Viasat right now?
Before you buy stock in Viasat, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Viasat wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $818,587!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of February 7, 2025
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
