Mahmud Haq Bought 11% More Shares In CareCloud
Those following along with CareCloud, Inc. (NASDAQ:CCLD) will no doubt be intrigued by the recent purchase of shares by Mahmud Haq, Founder & Executive Chairman of the company, who spent a stonking US$645k on stock at an average price of US$1.29. Not only is that a big swing, but it increased their holding size by 11%, which is definitely great to see.
See our latest analysis for CareCloud
CareCloud Insider Transactions Over The Last Year
Notably, that recent purchase by Mahmud Haq is the biggest insider purchase of CareCloud shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$1.57. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for CareCloud share holders is that insiders were buying at near the current price.
In the last twelve months CareCloud insiders were buying shares, but not selling. They paid about US$1.24 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
CareCloud is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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 36% of CareCloud shares, worth about US$8.9m. 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 Does This Data Suggest About CareCloud Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in CareCloud shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for CareCloud you should know about.
Of course CareCloud may not be the best stock to buy. So you may wish to see this free collection of high quality 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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