Insiders who purchased ModivCare Inc. (NASDAQ:MODV) shares worth US$105k during the past year experienced a gain of 22% in the stock price last week. However, despite this gain, insiders have incurred losses totaling US$35k since the time of purchase.
While it is not advisable to solely rely on insider trading activities when making investment decisions, it is still important to keep track of what insiders are doing. The CEO and President of ModivCare, L. Sampson, made the largest insider purchase in the last 12 months, acquiring shares worth US$105k at a price higher than the current market price. This suggests that Sampson may be bullish about the company’s future prospects.
Insider ownership is another factor to consider in assessing the alignment between company leaders and other shareholders. According to data, insiders own approximately US$4.4m worth of ModivCare stock, which represents about 0.9% of the company. While this indicates some level of alignment, higher levels of insider ownership are generally preferred.
Although there have been no recent insider transactions in ModivCare shares, the analysis of transactions over the past year is positive. However, it would be more reassuring if insiders held a larger stake in the company.
While it is important to monitor insider transactions, it is equally crucial to be aware of the risks facing ModivCare. Investors should take a comprehensive look at the company’s financial health, potential warning signs, and other investment opportunities to make informed decisions.
Sources: Simply Wall St
Definitions:
– Insiders: Individuals who report their transactions to the relevant regulatory body and may include company directors and executives.
– Insider ownership: The percentage of company shares owned by insiders.
– Stock price: The current price of a company’s shares in the stock market.
– Bullish: Optimistic about the future prospects of a company or the overall market.
– Alignment: The degree to which the interests of company leaders and shareholders are in harmony.
– Stake: The ownership or investment in a company.
Source: Simply Wall St.