Anyone interested in Merit Medical Systems, Inc. (NASDAQ:MMSI) should probably be aware that the CFO & Treasurer, Raul Parra, recently divested US$479k worth of shares in the company, at an average price of US$73.95 each. That sale was 46% of their holding, so it does make us raise an eyebrow.
Merit Medical Systems Insider Transactions Over The Last Year
Notably, that recent sale by Raul Parra is the biggest insider sale of Merit Medical Systems shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$71.93. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Merit Medical Systems didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Merit Medical Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Merit Medical Systems Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 2.3% of Merit Medical Systems shares, worth about US$99m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Merit Medical Systems Insiders?
Insiders haven't bought Merit Medical Systems 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. On the plus side, Merit Medical Systems makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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 1 warning sign for Merit Medical Systems you should know about.
But note: Merit Medical Systems 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 of direct interests only, but not derivative transactions or indirect interests.
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