Yahoo Finance Modular Medical's Market Cap Up US$3.2m Following Year Of Insider Stock Buying
Last week, Modular Medical, Inc. (NASDAQ:MODD) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a US$3.2m increase in the company's market worth, implying a 13% gain on their initial purchase. As a result, their original purchase of US$201.9k worth of stock is now worth US$228.7k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Modular Medical
Modular Medical Insider Transactions Over The Last Year
The Director Morgan Frank made the biggest insider purchase in the last 12 months. That single transaction was for US$156k worth of shares at a price of US$1.08 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.23. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Modular Medical insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Modular Medical Have Bought Stock Recently
Over the last quarter, Modular Medical insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$202k worth of shares. That shows some optimism about the company's future.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. It appears that Modular Medical insiders own 15% of the company, worth about US$3.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Modular Medical Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Modular Medical we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Modular Medical. Our analysis shows 6 warning signs for Modular Medical (4 don't sit too well with us!) and we strongly recommend you look at them before investing.
But note: Modular Medical 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.
