Possible Bearish Signals With Pediatrix Medical Group Insiders Disposing Stock

In the last year, many Pediatrix Medical Group, Inc. (NYSE:MD) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Pediatrix Medical Group

In the last twelve months, the biggest single sale by an insider was when the insider, C. Richards, sold US$504k worth of shares at a price of US$10.08 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$13.51. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 22% of C. Richards's holding.

Insiders in Pediatrix Medical Group didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Pediatrix Medical Group

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Does Pediatrix Medical Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.5% of Pediatrix Medical Group shares, worth about US$17m. 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 Pediatrix Medical Group Insider Transactions Indicate?

The fact that there have been no Pediatrix Medical Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Pediatrix Medical Group insiders. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Pediatrix Medical Group, you should check out this free report on analyst forecasts for the company .

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 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.