Anyone interested in IRadimed Corporation (NASDAQ:IRMD) should probably be aware that the Independent Director, Monty Allen, recently divested US$199k worth of shares in the company, at an average price of US$24.74 each. That sale was 34% of their holding, so it does make us raise an eyebrow.
IRadimed Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Controller, Louis Waldman, sold US$568k worth of shares at a price of US$23.53 per share. That means that an insider was selling shares at around the current price of US$22.88. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we note insiders sold 34456 shares worth US$804k. Insiders in IRadimed didn't buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does IRadimed Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. IRadimed insiders own about US$136m worth of shares (which is 52% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About IRadimed Insiders?
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. On the plus side, IRadimed makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in IRadimed, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
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