Is Viasat Stock a Buy or Sell After the CEO Sold Shares Worth $4 Million?

Mark D. Dankberg, Chairman and CEO of Viasat, indirectly sold 100,000 shares for a total consideration of $4.0 million on Jan. 6, 2026, according to the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($40.34).

Key questions

• What is the significance of this 100,000-share transaction relative to recent insider activity?
  This sale is the second in a series of large disposals, following a 200,000-share sale, leading to a reduction of Mark D. Dankberg's indirect holdings from 1,734,993 to 1,434,993 shares since July 2025.
• How does the transaction relate to available capacity in the insider's holdings?
  After prior dispositions, 1,534,993 shares remained before this sale, which dictated the smaller size relative to the earlier 200,000-share transaction.
• What is the nature of the ownership structure impacted by this transaction?
  All shares sold were held indirectly, primarily through trust entities as footnoted in the filing, with no direct ownership involved in the transaction.
• Was the transaction pre-scheduled, and does that affect interpretation?
  The sale was conducted under a Rule 10b5-1 trading plan adopted on Sept. 15, 2025, indicating a pre-determined disposition schedule and reducing the likelihood of opportunistic market timing.

Company overview

* 1-year price change calculated using Jan. 6, 2026 as the reference date.

Company snapshot

• Viasat provides satellite-based broadband internet, in-flight connectivity, communications equipment, and related technology solutions across consumer, commercial, and government markets.
• It generates revenue primarily through subscription-based satellite services, equipment sales, and technology licensing, leveraging proprietary satellite network infrastructure and ground systems.
• The company serves a global customer base, including residential broadband users, commercial airlines, maritime operators, enterprises, and government agencies.

Viasat is a global communications company specializing in advanced satellite and broadband solutions. With a diversified portfolio spanning fixed and mobile connectivity, the company leverages proprietary technology and infrastructure to address complex connectivity needs across multiple sectors.

Viasat's scale and integrated approach position it as a key player in the evolving satellite communications market.

What this transaction means for investors

Viasat Chairman and CEO Mark D. Dankberg's sale of shares is not a red flag. He executed the trade as part of a Rule 10b5-1 trading plan he adopted in September of 2025. Insiders frequently establish such plans to prearrange trades and avoid accusations of acting on insider information.

Moreover, after the sale, Mr. Dankberg retained over one million shares, suggesting he is not trying to dump the stock. But the sale came at an opportune time for Mr. Dankberg, as shares hovered not far from the 52-week high of $43.59 reached in November.

Shares are up as the company performed a number of successful satellite launches and captured government contracts. Its revenue is growing year over year as well.

In Viasat's fiscal second quarter ended Sept. 30, the company's sales reached $1.14 billion, up from the prior year's $1.12 billion. Moreover, its fiscal Q2 net loss lowered to $61.4 million from the previous year's loss of $137.6 million.

However, the company's success led to its share price increase, resulting in a price-to-sales ratio that's near a high point for the past year. As a result, now is a good time to sell shares but not to buy. Wait for the stock price to drop if you're thinking of investing.

Glossary

Indirect holdings: Shares owned through intermediaries like trusts or entities, not held directly in the individual's name.
Trust entities: Legal arrangements where a trustee manages assets on behalf of beneficiaries.
Rule 10b5-1 trading plan: Pre-arranged plan allowing insiders to sell shares on a set schedule, reducing risk of insider trading.
Insider activity: Buying or selling of a company's stock by its executives, directors, or major shareholders.
Disposition: The act of selling or otherwise transferring ownership of an asset.
Form 4: A required SEC filing reporting insider trades in a company's securities.
Weighted average purchase price: The average price per share, weighted by the number of shares in each transaction.
Beneficial ownership: Having the benefits of ownership, even if the shares are not held directly.
Pre-scheduled transaction: A trade planned in advance, often under regulatory rules to avoid conflicts of interest.
Transaction value: The total dollar amount received or paid in a securities transaction.
Disposal: The act of selling or getting rid of an asset.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.