Chief Commercial Officer Chad Patterson Sold A Bunch Of Shares In iRhythm Technologies

Anyone interested in iRhythm Technologies, Inc. (NASDAQ:IRTC) should probably be aware that the Chief Commercial Officer, Chad Patterson, recently divested US$225k worth of shares in the company, at an average price of US$74.66 each. The eyebrow raising move amounted to a reduction of 28% in their holding.

Check out our latest analysis for iRhythm Technologies

iRhythm Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Quentin Blackford, for US$3.0m worth of shares, at about US$122 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$72.83). So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in iRhythm Technologies than they bought, over the last year. You can see the insider transactions (by companies and 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!

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Insider Ownership

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. It appears that iRhythm Technologies insiders own 0.9% of the company, worth about US$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The iRhythm Technologies Insider Transactions Indicate?

The stark truth for iRhythm Technologies is that there has been more insider selling than insider buying in the last three months. 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. So we'd only buy after careful consideration. While it's good to be aware of 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of iRhythm Technologies.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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