Keep An Eye On Ironwood Pharmaceuticals As Insider Stock Selling Hits US$515k

Explore Ironwood Pharmaceuticals's Fair Values from the Community and select yours

Last week, Ironwood Pharmaceuticals, Inc.'s (NASDAQ:IRWD) stock jumped 15%, but insiders who sold US$515k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$1.78, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The Last 12 Months Of Insider Transactions At Ironwood Pharmaceuticals

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Thomas McCourt, for US$245k worth of shares, at about US$1.76 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$1.03). So it is hard to draw any strong conclusion from it.

Ironwood Pharmaceuticals insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Ironwood Pharmaceuticals

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.

Insiders At Ironwood Pharmaceuticals Have Sold Stock Recently

We have seen a bit of insider selling at Ironwood Pharmaceuticals, over the last three months. Insiders sold just US$11k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Does Ironwood Pharmaceuticals Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$4.0m worth of Ironwood Pharmaceuticals stock, about 2.4% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Ironwood Pharmaceuticals Tell Us?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. We're a little cautious about the insider selling at Ironwood Pharmaceuticals. And usually insiders own more stock in the company, according to our data. 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 Ironwood Pharmaceuticals you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.