We wouldn't blame Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) shareholders if they were a little worried about the fact that Thomas McCourt, the CEO & Director recently netted about US$2.7m selling shares at an average price of US$15.24. That sale reduced their total holding by 39% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Ironwood Pharmaceuticals

The Last 12 Months Of Insider Transactions At Ironwood Pharmaceuticals

Notably, that recent sale by Thomas McCourt is the biggest insider sale of Ironwood Pharmaceuticals shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$14.58. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year we saw more insider selling of Ironwood Pharmaceuticals shares, than buying. 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!

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Insider Ownership Of Ironwood Pharmaceuticals

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.8% of Ironwood Pharmaceuticals shares, worth about US$41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Ironwood Pharmaceuticals Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Case in point: We've spotted 2 warning signs for Ironwood Pharmaceuticals you should be aware of, and 1 of these is potentially serious.

But note: Ironwood Pharmaceuticals 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.

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.