We note that the IRADIMED CORPORATION (NASDAQ:IRMD) Independent Director, Monty Allen, recently sold US$84k worth of stock for US$43.37 per share. However we note that the sale only shrunk their holding by 9.7%.
The Last 12 Months Of Insider Transactions At IRADIMED
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Anthony Vuoto, sold US$122k worth of shares at a price of US$39.91 per share. That means that even when the share price was below the current price of US$42.77, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 18% of Anthony Vuoto's holding.
IRADIMED insiders didn't buy any shares 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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of IRADIMED
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IRADIMED insiders own 37% of the company, currently worth about US$203m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At IRADIMED Tell Us?
An insider hasn't bought IRADIMED stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since IRADIMED is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 3 warning signs for IRADIMED (of which 1 can't be ignored!) you should know about.
But note: IRADIMED may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.