We'd be surprised if Pediatrix Medical Group, Inc. (NYSE:MD) shareholders haven't noticed that the Chair, Mark Ordan, recently sold US$424k worth of stock at US$15.35 per share. That sale was 17% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Pediatrix Medical Group
Over the last year, we can see that the biggest insider sale was by the insider, C. Richards, for US$504k worth of shares, at about US$10.08 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$14.15. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 22% of C. Richards's holding.
Pediatrix Medical Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership
Many investors like to check how much of a company is owned by 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 1.6% of Pediatrix Medical Group shares, worth about US$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Pediatrix Medical Group Insiders?
Insiders sold Pediatrix Medical Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Pediatrix Medical Group has 3 warning signs and it would be unwise to ignore them.
Of course Pediatrix Medical Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
