Anyone interested in MEDNAX, Inc. (NYSE:MD) should probably be aware that the Senior VP & Chief Accounting Officer, John Pepia, recently divested US$318k worth of shares in the company, at an average price of US$31.83 each. On the bright side, that sale was only 8.3% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At MEDNAX
In the last twelve months, the biggest single sale by an insider was when the Executive VP, Dominic Andreano, sold US$416k worth of shares at a price of US$18.93 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$30.97. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 29% of Dominic Andreano's holding.
Insiders in MEDNAX didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like MEDNAX better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of MEDNAX
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. MEDNAX insiders own 4.1% of the company, currently worth about US$109m 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 MEDNAX Insiders?
An insider hasn't bought MEDNAX stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since MEDNAX is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MEDNAX. Every company has risks, and we've spotted 3 warning signs for MEDNAX (of which 1 is a bit unpleasant!) you should know about.
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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