Mednax (NYSE:MD) provides newborn, anesthesia, maternal-fetal, and other pediatric subspecialties care physician services in the United States and Puerto Rico.
Insider selling during the last 30 days
Here is a table of Mednax' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Karl Wagner||President, AA||May 9||79,524||Yes||150,498 shares + 20,000 options||31.8%|
|Pascal Goldschmidt||Director||May 9||30,000||No||5,350 shares + 10,000 options||66.2%|
|Joseph Calabro||COO||May 7-8||137,500||Yes||226,542 shares||37.8%|
There have been 247,024 shares sold by insiders during the last 30 days. Karl Wagner and Joseph Calabro sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Mednax' insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 849,270 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of May 2014 has seen the most insider selling.
Mednax reported the first-quarter financial results on May 1 with the following highlights:
|Net income||$63.7 million|
The three insiders sold their shares after these results.
Mednax' second-quarter guidance is as follows:
|Same-unit revenue growth||3%-5%|
|Qtrly Rev Growth (yoy):||0.13||0.08||0.05|
|PEG (5 yr expected):||1.41||2.24||1.56|
Mednax has the highest P/S ratio among these three companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Mednax has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Mednax, and there have not been any insiders buying Mednax during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Mednax has an insider ownership of 1.65%.
Before going short Mednax, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.