Anyone interested in Model N, Inc. (NYSE:MODN) should probably be aware that the Senior VP & CFO, David Barter, recently divested US$424k worth of shares in the company, at an average price of US$32.55 each. However, the silver lining is that the sale only reduced their total holding by 5.9%, so we’re hesitant to read anything much into it, on its own.
Model N Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Director, Jason Blessing, for US$2.4m worth of shares, at about US$34.24 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$28.49. So it may not tell us anything about how insiders feel about the current share price.
Model N insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Model N Boast High 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. Model N insiders own 19% of the company, currently worth about US$185m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Model N Insiders?
Insiders haven’t bought Model N stock in the last three months, but there was some selling. And even if we look at the last year, we didn’t see any purchases. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. 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 example – Model N has 3 warning signs we think you should be aware of.
But note: Model N 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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. Thank you for reading.