Independent Chairman Michael Dougherty Just Bought 175% More Shares In Idera Pharmaceuticals, Inc. (NASDAQ:IDRA)

By
Simply Wall St
Published
June 04, 2021
NasdaqCM:IDRA
Source: Shutterstock

Investors who take an interest in Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) should definitely note that the Independent Chairman, Michael Dougherty, recently paid US$1.19 per share to buy US$101k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 175%, potentially signalling some real optimism.

Check out our latest analysis for Idera Pharmaceuticals

The Last 12 Months Of Insider Transactions At Idera Pharmaceuticals

The President, Vincent Milano, made the biggest insider sale in the last 12 months. That single transaction was for US$161k worth of shares at a price of US$4.32 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.31. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$140k for 95.00k shares. On the other hand they divested 69.49k shares, for US$241k. Over the last year we saw more insider selling of Idera Pharmaceuticals shares, than buying. The sellers received a price of around US$3.47, on average. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of US$1.31. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:IDRA Insider Trading Volume June 5th 2021

I will like Idera 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Idera Pharmaceuticals insiders own 2.2% of the company, worth about US$1.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Idera Pharmaceuticals Tell Us?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. 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. Every company has risks, and we've spotted 5 warning signs for Idera Pharmaceuticals (of which 2 can't be ignored!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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