We wouldn't blame Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) shareholders if they were a little worried about the fact that Thomas McCourt, the CEO & Director recently netted about US$2.7m selling shares at an average price of US$15.24. That's a big disposal, and it decreased their holding size by 39%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Ironwood Pharmaceuticals
In fact, the recent sale by Thomas McCourt was the biggest sale of Ironwood Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$14.58. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of Ironwood Pharmaceuticals shares, than buying. 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!
I will like Ironwood Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Ironwood Pharmaceuticals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Ironwood Pharmaceuticals insiders own 1.8% of the company, worth about US$41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Ironwood Pharmaceuticals Insider Transactions Indicate?
Insiders sold Ironwood Pharmaceuticals shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Ironwood Pharmaceuticals is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course Ironwood Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.