Stock Analysis

The Independent Chairman of the Board of Repro Med Systems, Inc. (NASDAQ:KRMD), R. Fletcher, Just Bought 77% More Shares

  •  Updated
NasdaqCM:KRMD
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Investors who take an interest in Repro Med Systems, Inc. (NASDAQ:KRMD) should definitely note that the Independent Chairman of the Board, R. Fletcher, recently paid US$4.48 per share to buy US$100k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 77%.

Check out our latest analysis for Repro Med Systems

Repro Med Systems Insider Transactions Over The Last Year

Notably, that recent purchase by R. Fletcher is the biggest insider purchase of Repro Med Systems shares that we've seen in the last year. That implies that an insider found the current price of US$5.24 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Repro Med Systems share holders is that insiders were buying at near the current price.

Repro Med Systems insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
NasdaqCM:KRMD Insider Trading Volume December 3rd 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Repro Med Systems 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Repro Med Systems shares, worth about US$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Repro Med Systems Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Repro Med Systems insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Repro Med Systems and understanding them should be part of your investment process.

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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What are the risks and opportunities for KORU Medical Systems?

KORU Medical Systems, Inc. designs, manufactures, and markets portable medical devices primarily for the ambulatory infusion market in the United States and internationally.

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Rewards

  • Revenue is forecast to grow 11.77% per year

Risks

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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KORU Medical Systems

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