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As Marpai, Inc. (NASDAQ:MRAI) drops to US$19m market cap, insiders might rethink their


Insiders who acquired US$1.2m worth of Marpai, Inc.’s (NASDAQ:MRAI) stock at an average price of US$1.16 in the past 12 months may be dismayed by the recent 11% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$983k, which is not great.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out the opportunities and risks within the US Insurance industry.

Marpai Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Damien Lamendola bought US$312k worth of shares at a price of US$1.12 per share. That means that even when the share price was higher than US$0.93 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Marpai insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:MRAI Insider Trading Volume December 4th 2022

Marpai is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Marpai Insiders Bought Stock Recently

Over the last quarter, Marpai insiders have spent a meaningful amount on shares. In total, insiders bought US$108k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.

Insider Ownership Of Marpai

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 39% of Marpai shares, worth about US$7.7m. 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 Marpai Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don’t feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Marpai insiders are well aligned, and that they may think the share price is too low. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for Marpai (1 is significant!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

Valuation is complex, but we’re helping make it simple.

Find out whether Marpai is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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