We note that the iHeartMedia, Inc. (NASDAQ:IHRT) Lead Independent Director, James Rasulo, recently sold US$96k worth of stock for US$2.40 per share. It wasn't a huge sale, but it did reduce their holding by 17%. This does not instill confidence.
iHeartMedia Insider Transactions Over The Last Year
In fact, the recent sale by James Rasulo was the biggest sale of iHeartMedia shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$2.21. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that iHeartMedia insiders own 2.7% of the company, worth about US$8.9m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At iHeartMedia Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. 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 3 warning signs for iHeartMedia and we suggest you have a look.
But note: iHeartMedia 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.
