Stock Analysis
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How Much Are iCAD, Inc. (NASDAQ:ICAD) Insiders Taking Off The Table?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in iCAD, Inc. (NASDAQ:ICAD).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for iCAD
iCAD Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Richard Areglado, sold US$52k worth of shares at a price of US$10.49 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$14.28. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of Richard Areglado's holding. The only individual insider seller over the last year was Richard Areglado.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that iCAD insiders own 11% of the company, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At iCAD Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by iCAD insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing iCAD. While conducting our analysis, we found that iCAD has 2 warning signs and it would be unwise to ignore these.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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What are the risks and opportunities for iCAD?
iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States.
Rewards
Earnings are forecast to grow 85.62% per year
Risks
Does not have a meaningful market cap ($60M)
Further research on
iCAD
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.
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About NasdaqCM:ICAD
iCAD
iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States.
Flawless balance sheet with high growth potential.
