Insider Spends US$169k Buying More Shares In Modular Medical

Investors who take an interest in Modular Medical, Inc. (NASDAQ:MODD) should definitely note that the Chief Executive Officer, James Besser, recently paid US$1.69 per share to buy US$169k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 69%.

Check out our latest analysis for Modular Medical

Modular Medical Insider Transactions Over The Last Year

In fact, the recent purchase by James Besser was the biggest purchase of Modular Medical shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$1.70. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Modular Medical insiders may have bought shares in the last year, but they didn't sell any. 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!

Modular Medical is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Modular Medical

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Modular Medical insiders own 8.5% of the company, worth about US$5.8m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Modular Medical Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Modular Medical insiders are reasonably well aligned, and optimistic for the future. 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. When we did our research, we found 4 warning signs for Modular Medical (2 are concerning!) that we believe deserve your full attention.

But note: Modular Medical 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 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.