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CEO Chris Kemp doubles Astra Space (ASTR) stock

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Shares of Astra Space (NASDAQ:AST) shares are in the spotlight, with CEO Chris Kemp recently announcing an insider buy of 250,000 shares at an average price of 47 cents per share.

Shares of the former Special Purpose Acquisition Company (SPAC) have returned to Earth this year and are down more than 90% year-to-date. During the third quarter, the company reported revenue of $2.77 million, driven entirely by space products. As of September 30, Astra had received a total of 237 orders for its Astra Spacecraft Engine, up 130% from June 30, 2021. Yet Astra remains massively unprofitable and recorded a net loss of $199.1 million for the quarter. In today’s high interest rate environment, losses are being watched more than ever. Kemp added:

“We have completed the construction of our rocket production facility in Alameda, California, including the provision of test infrastructure for the development of Launch System 2. We are also delighted to welcome Airbus OneWeb Satellites, Maxar Technologies and Astroscale as Astra spacecraft. Motor customers, among others.

Let’s go into the details of his purchase.

ASTR Stock: CEO Chris Kemp buys shares

Following the purchase of Kemp on December 16, he now directly owns a total of 1.08 million. In addition, he indirectly owns 33,000 shares through his wife. The December purchase was Kemp’s second of the year. The first happened on August 19 when he bought 100,000 shares at an average price of $1.25 per share.

So what do other company insiders think? Over the past year, Astra insiders have bought 2.62 million shares and sold 11.02 million shares. This represents net activity of 8.40 million shares sold. This doesn’t exactly convey a bullish picture.

Meanwhile, the company experienced a management shakeup earlier this month. Astra has announced that chief engineer Benjamin Lyon has resigned and will leave the company on December 27. About a month earlier, Astra had announced that it would lay off around 16% of its employees.

In October, Astra received a Notice of Compliance from Nasdaq due to its shares trading below $1. The company has until April 4 next year to regain the $1 mark and may be eligible to file for a 180-day extension if the requirement is not met.

There are certainly plenty of negative factors affecting ASTR shares at the moment, although the Kemp buy marks a much-needed wave of confidence in the company’s long-term potential.

At the date of publication, Eddie Pan did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Eddie Pan specializes in institutional investments and insider trading. He writes for InvestorPlace’s Today’s Market team, which focuses on the latest news on popular stocks.


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