Mednax: 3 Different Insiders Have Sold Shares This Month

May.12.14 | About: Mednax, Inc. (MD)


3 insiders sold Mednax stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

Mednax (NYSE:MD) provides newborn, anesthesia, maternal-fetal, and other pediatric subspecialties care physician services in the United States and Puerto Rico.
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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%
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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
May 2014 247,024 0
April 2014 0 0
March 2014 0 0
February 2014 172,868 0
January 2014 0 0
December 2013 0 0
November 2013 231,926 0
October 2013 0 0
September 2013 6,880 0
August 2013 61,499 0
July 2013 0 0
June 2013 37,525 0
May 2013 0 0
April 2013 3,500 0
March 2013 72,048 0
February 2013 16,000 0
January 2013 0 0
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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:

Revenue $566.3 million
Net income $63.7 million
Cash $27.5 million
Debt $248.2 million
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The three insiders sold their shares after these results.


Mednax' second-quarter guidance is as follows:

Same-unit revenue growth 3%-5%
EPS $0.75-$0.79
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Mednax' competitors include Lifepoint Hospitals (NASDAQ:LPNT) and Universal Health Services (NYSE:UHS). Here is a table comparing these companies.

Market Cap: 5.70B 2.56B 8.16B
Employees: 6,500 33,400 47,000
Qtrly Rev Growth (yoy): 0.13 0.08 0.05
Revenue: 2.22B 3.75B 7.37B
Gross Margin: 0.34 0.34 0.39
EBITDA: 505.87M 489.70M 1.39B
Operating Margin: 0.21 0.06 0.14
Net Income: 288.81M 132.60M 528.73M
EPS: 2.86 2.78 5.31
P/E: 20.10 20.73 15.55
PEG (5 yr expected): 1.41 2.24 1.56
P/S: 2.55 0.67 1.10
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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
LPNT 0 27,580
UHS 1,000 28,114
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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.