We'd be surprised if RYTHM, Inc. (NASDAQ:RYM) shareholders haven't noticed that the Independent Director, Timothy Mahoney, recently sold US$132k worth of stock at US$26.34 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

The Last 12 Months Of Insider Transactions At RYTHM

Over the last year, we can see that the biggest insider sale was by the Independent Director, Maxwell Holtzman, for US$214k worth of shares, at about US$45.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$26.98. So it may not shed much light on insider confidence at current levels.

In total, RYTHM insiders sold more than they bought over the last year. They sold for an average price of about US$30.73. 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$26.98. 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!

I will like RYTHM better if I see some big insider buys.

Does RYTHM Boast High 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 RYTHM insiders own 2.2% of the company, worth about US$1.3m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At RYTHM Tell Us?

An insider sold RYTHM shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! While it's good to be aware of 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.

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.

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.