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CEO & Director of Iridium Communications Picks Up 4.8% More Stock

Simply Wall St ·  11/24/2023 18:05

Iridium Communications Inc. (NASDAQ:IRDM) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Matthew Desch, recently bought a whopping US$1.0m worth of stock, at a price of US$37.01. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.8%.

See our latest analysis for Iridium Communications

Iridium Communications Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Chairman of the Board, Robert Niehaus, sold US$4.4m worth of shares at a price of US$63.31 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$37.32). So it may not tell us anything about how insiders feel about the current share price.

In total, Iridium Communications insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:IRDM Insider Trading Volume November 24th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Iridium Communications

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Iridium Communications insiders own about US$68m worth of shares. That equates to 1.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Iridium Communications Insiders?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Iridium Communications insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Iridium Communications you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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