Some iRhythm Technologies, Inc. (NASDAQ:IRTC) shareholders may be a little concerned to see that the Executive VP of Corporate Development & Investor Relations, Daniel Wilson, recently sold a substantial US$746k worth of stock at a price of US$103 per share. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.
See our latest analysis for iRhythm Technologies
The Last 12 Months Of Insider Transactions At iRhythm Technologies
Notably, that recent sale by Daniel Wilson is the biggest insider sale of iRhythm Technologies shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$113. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 21% of Daniel Wilson's holding.
Insiders in iRhythm Technologies didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does iRhythm Technologies Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.7% of iRhythm Technologies shares, worth about US$23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At iRhythm Technologies Tell Us?
Insiders sold iRhythm Technologies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for iRhythm Technologies and we suggest you have a look.
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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.