Insiders at ModivCare Inc. (NASDAQ: MODV) who purchased $105,000 worth of shares in the past year enjoyed a 22% increase in the stock price last week. However, the overall outcome of these purchases has resulted in losses totaling $35,000. While it is not advisable to base investment decisions solely on insider activity, keeping track of their actions can be a valuable indicator.
The CEO and President, L. Sampson, made the largest insider purchase in the last 12 months, buying shares worth $105,000 at a price of $52.70 each. This suggests that despite the current price being at $35.25, the insider still believed in the long-term value of the company and saw potential for growth.
It is encouraging to see an insider buy shares at a price higher than the current market value, as it indicates confidence in the company’s prospects. However, it is worth noting that L. Sampson was the only insider who made a purchase during the last year.
Insider ownership of ModivCare stock stands at approximately 0.9% of the company, with insiders holding shares worth $4.4 million. While this is a positive sign, it would be ideal to see higher levels of ownership by insiders.
In terms of risks and opportunities, it is important to consider various factors beyond insider transactions. ModivCare Inc. is a technology-enabled healthcare services company that provides integrated supportive care solutions for public and private payors and their members. It is currently trading at a significant discount to its estimated fair value and is projected to experience strong earnings growth.
However, the stock price has been volatile in the past three months, and the company has less than one year of cash runway. It is crucial for investors to conduct a thorough analysis of the company and consider potential risks before making any investment decisions.
While insider purchases can provide valuable insights, it is essential to balance this information with other fundamental data and market research. This article is for informational purposes only and should not be considered as financial advice. Always conduct your own due diligence and consult with a professional advisor before making any investment decisions.
– Simply Wall St. (source article)