Don't Ignore The Fact That This Insider Just Sold Some Shares In Model N, Inc. (NYSE:MODN)

Simply Wall St
May 21, 2022
Source: Shutterstock

Anyone interested in Model N, Inc. (NYSE:MODN) should probably be aware that the President, Jason Blessing, recently divested US$292k worth of shares in the company, at an average price of US$23.61 each. On the bright side, that sale was only 2.1% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Model N

Model N Insider Transactions Over The Last Year

In fact, the recent sale by President Jason Blessing was not their only sale of Model N shares this year. They previously made an even bigger sale of -US$471k worth of shares at a price of US$32.37 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$21.69). So it may not tell us anything about how insiders feel about the current share price.

Model N insiders didn't buy any shares over the last year. 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!

NYSE:MODN Insider Trading Volume May 21st 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Model N 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. We usually like to see fairly high levels of insider ownership. Insiders own 10% of Model N shares, worth about US$83m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Model N Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Model N. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Model N.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.