Investors who take an interest in iHeartMedia, Inc. (NASDAQ:IHRT) should definitely note that the Chairman & CEO, Robert Pittman, recently paid US$1.60 per share to buy US$320k worth of the stock. Although the purchase only increased their holding by 9.2%, it is still a solid purchase in our view.

The Last 12 Months Of Insider Transactions At iHeartMedia

Notably, that recent purchase by Robert Pittman is the biggest insider purchase of iHeartMedia shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$1.64. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the iHeartMedia insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 300.00k shares for US$499k. But insiders sold 40.22k shares worth US$96k. Overall, iHeartMedia insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

iHeartMedia is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. Our data indicates that iHeartMedia insiders own about US$7.3m worth of shares (which is 2.9% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At iHeartMedia Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on iHeartMedia stock. 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. Our analysis shows 3 warning signs for iHeartMedia (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.

But note: iHeartMedia 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.