Trade Alert: The Executive Chair Of iCAD, Inc. (NASDAQ:ICAD), Dana Brown, Has Just Spent US$52k Buying A Few More Shares
Whilst it may not be a huge deal, we thought it was good to see that the iCAD, Inc. (NASDAQ:ICAD) Executive Chair, Dana Brown, recently bought US$52k worth of stock, for US$1.30 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Check out our latest analysis for iCAD
The Last 12 Months Of Insider Transactions At iCAD
Notably, that recent purchase by Dana Brown is the biggest insider purchase of iCAD shares that we've seen in the last year. That means that even when the share price was higher than US$1.28 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Dana Brown was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Our data indicates that iCAD insiders own about US$2.4m worth of shares (which is 7.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About iCAD Insiders?
It is good to see the recent insider purchase. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on iCAD stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - iCAD has 3 warning signs we think you should be aware of.
But note: iCAD 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, but not derivative transactions.
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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.
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