Chief Legal Officer & Company Secretary Kathleen Morgan Sold A Bunch Of Shares In Iridium Communications

We wouldn't blame Iridium Communications Inc. (NASDAQ:IRDM) shareholders if they were a little worried about the fact that Kathleen Morgan, the Chief Legal Officer & Company Secretary recently netted about US$504k selling shares at an average price of US$33.58. Probably the most concerning element of the whole transaction is that the disposal amounted to 54% of their entire holding.

Check out our latest analysis for Iridium Communications

The Last 12 Months Of Insider Transactions At Iridium Communications

In fact, the recent sale by Kathleen Morgan was the biggest sale of Iridium Communications shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$31.08. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Iridium Communications 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Iridium Communications

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Iridium Communications insiders own about US$63m worth of shares. That equates to 1.9% 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 Iridium Communications Insiders?

Insiders haven't bought Iridium Communications stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Iridium Communications is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with Iridium Communications (including 1 which is a bit concerning).

But note: Iridium Communications 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 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.