Yahoo Finance One ModivCare Insider Raised Stake By 94% In Previous Year
Viewing insider transactions for ModivCare Inc.'s (NASDAQ:MODV ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for ModivCare
ModivCare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President L. Sampson for US$121k worth of shares, at about US$34.57 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$26.32). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. L. Sampson was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ModivCare 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
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.1% of ModivCare shares, worth about US$8.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At ModivCare Tell Us?
The fact that there have been no ModivCare insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more ModivCare stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ModivCare. While conducting our analysis, we found that ModivCare has 1 warning sign and it would be unwise to ignore this.
But note: ModivCare 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
