Stock Analysis
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- NYSE:IRNT
IronNet, Inc. (NYSE:IRNT) insiders who sold US$6.7m worth of stock earlier this year are probably glad they did so as market cap slides to US$31m
Insiders seem to have made the most of their holdings by selling US$6.7m worth of IronNet, Inc. (NYSE:IRNT) stock at an average sell price of US$3.52 during the past year. The company's market worth decreased by US$5.4m over the past week after the stock price dropped 15%, although insiders were able to minimize their losses
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for IronNet
The Last 12 Months Of Insider Transactions At IronNet
Over the last year, we can see that the biggest insider sale was by the insider, William Welch, for US$5.9m worth of shares, at about US$3.74 per share. 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$0.30. So it is hard to draw any strong conclusion from it.
Insiders in IronNet didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of IronNet
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. IronNet insiders own about US$7.2m worth of shares. That equates to 23% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About IronNet Insiders?
It doesn't really mean much that no insider has traded IronNet shares in the last quarter. We don't take much encouragement from the transactions by IronNet insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IronNet. To help with this, we've discovered 5 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in IronNet.
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.
What are the risks and opportunities for IronNet?
Rewards
Revenue grew by 5.7% over the past year
Risks
Highly volatile share price over the past 3 months
Negative shareholders equity
Does not have a meaningful market cap ($33M)
Shareholders have been diluted in the past year
Latest financial reports are more than 6 months old
Further research on
IronNet
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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.
About NYSE:IRNT
Mediocre balance sheet and slightly overvalued.
