Anyone interested in iRhythm Holdings, Inc. (NASDAQ:IRTC) should probably be aware that the Chief Commercial and Product Officer, Chad Patterson, recently divested US$331k worth of shares in the company, at an average price of US$122 each. However, the silver lining is that the sale only reduced their total holding by 8.9%, so we're hesitant to read anything much into it, on its own.

iRhythm Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Quentin Blackford, sold US$3.5m worth of shares at a price of US$135 per share. So what is clear is that an insider saw fit to sell at around the current price of US$125. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

Insiders in iRhythm Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like iRhythm Holdings better if I see some big insider buys.

Does iRhythm Holdings 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. We usually like to see fairly high levels of insider ownership. iRhythm Holdings insiders own about US$51m worth of shares. That equates to 1.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About iRhythm Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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.

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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.

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.