On May 23, 2023, President, CEO, and CFO L Sampson purchased 2000 shares of ModivCare Inc (MODV, Financial), a leading provider of technology-enabled healthcare services. This insider buying activity could be a signal of confidence in the company's future prospects and may warrant further investigation by investors.
Who is L Sampson?
L Sampson is the President, CEO, and CFO of ModivCare Inc. With extensive experience in the healthcare industry, Sampson has been instrumental in driving the company's growth and strategic direction. Under Sampson's leadership, ModivCare has expanded its service offerings and improved its operational efficiency, positioning the company for long-term success.
ModivCare Inc's Business Description
ModivCare Inc is a technology-driven healthcare services company that focuses on providing non-emergency medical transportation (NEMT), personal and home care, and nutritional meal delivery services. The company's mission is to improve patient outcomes and reduce healthcare costs by offering innovative solutions that address the social determinants of health. ModivCare's services are designed to enhance patient satisfaction, improve healthcare access, and promote overall well-being.
Insider Buying Analysis
Over the past year, L Sampson has purchased a total of 2000 shares of ModivCare Inc and has not sold any shares. This recent insider buying activity could be an indication of Sampson's confidence in the company's future growth prospects and financial performance.
In the past year, there have been a total of 5 insider buys for ModivCare Inc, with no insider sells. This trend suggests that insiders are bullish on the company's stock and believe it may be undervalued.
Stock Price and Valuation
On the day of L Sampson's recent purchase, shares of ModivCare Inc were trading at $52.7 apiece, giving the stock a market capitalization of $722.638 million.
With a current price of $52.7 and a GuruFocus Value of $149.37, ModivCare Inc has a price-to-GF-Value ratio of 0.35. This indicates that the stock may be a possible value trap, and investors should think twice before making a decision based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by L Sampson, along with the overall trend of insider buys in the past year, may suggest that ModivCare Inc's stock is undervalued. However, the price-to-GF-Value ratio indicates that the stock could be a possible value trap. Investors should carefully consider these factors and conduct further research before making any investment decisions.
