While Pediatrix Medical Group, Inc. (NYSE:MD) shareholders have had a good week with the stock up 10%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell US$882k worth of stock in the last year, which could indicate some expected downturn.
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.
Check out our latest analysis for Pediatrix Medical Group
Pediatrix Medical Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chair, Mark Ordan, for US$438k worth of shares, at about US$13.26 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$9.22. So it may not shed much light on insider confidence at current levels.
Pediatrix Medical Group insiders didn't buy any shares over 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Pediatrix Medical Group insiders own 1.1% of the company, worth about US$8.7m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Pediatrix Medical Group Insiders?
It doesn't really mean much that no insider has traded Pediatrix Medical Group shares in the last quarter. The insider transactions at Pediatrix Medical Group are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Pediatrix Medical Group (1 shouldn't be ignored) you should be aware of.
But note: Pediatrix Medical Group 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.
