Those following along with MEDNAX, Inc. (NYSE:MD) will no doubt be intrigued by the recent purchase of shares by Michael Fernandez, Director of the company, who spent a stonking US$8.1m on stock at an average price of US$21.58. That increased their holding by a full 376.5%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
The Last 12 Months Of Insider Transactions At MEDNAX
Notably, that recent purchase by Michael Fernandez is the biggest insider purchase of MEDNAX shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, at around the current price, which is US$21.82. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the MEDNAX insider decided to buy shares at close to current prices. Michael Fernandez was the only individual insider to buy shares in the last twelve months.
Michael Fernandez bought a total of 500k shares over the year at an average price of US$21.52. You can see the insider transactions (by 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!
Does MEDNAX Boast High 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. 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 3.5% of MEDNAX shares, worth about US$64m. 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 Do The MEDNAX Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in MEDNAX shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in MEDNAX, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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