Insiders who bought CareCloud, Inc. (NASDAQ:CCLD) shares were handsomely rewarded last week over the past 12 months. The company’s market value increased by $7.7 million as the stock gained 22% over the same period. As a result, the shares they originally purchased for $829,600 are now worth $1.77 million.

While we do not believe shareholders should simply follow insider transactions, we do think it is perfectly logical to keep an eye on insider activities.

Check out our latest analysis for CareCloud

CareCloud insider transactions in the last year

The largest single purchase by an insider in the last twelve months was the purchase of $645,000 worth of shares by founder and CEO Mahmud Haq at a price of $1.57 per share. Although the purchase was made at a significantly lower price than the current price ($2.69), we still consider insider buying to be a positive. Since the purchase was made at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.

Over the last twelve months, CareCloud insiders bought shares but did not sell. They paid about $1.26 on average. In my opinion, it’s good that insiders invested their own money in the company. However, we must note that the investments were made well below today’s share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart below, you can see the exact details of each insider transaction!

CareCloud is not the only stock that insiders are buying. For those who like to find Small-cap companies at attractive valuations, The free A list of growing companies with recent insider purchases might be just the thing.

Does CareCloud have a high level of insider ownership?

Many investors like to check how much of a company is owned by insiders. Typically, the higher the percentage owned by insiders, the more likely it is that insiders are motivated to build the company for the long term. It appears that CareCloud insiders own 39% of the company, which is worth about $15 million. We’ve certainly seen higher percentages owned by insiders elsewhere, but these percentages are enough to indicate alignment between insiders and the other shareholders.

So what does this data say about CareCloud Insider?

The fact that no insiders traded CareCloud shares in the last quarter doesn’t mean much. However, our analysis of transactions over the last year is encouraging. Overall, we don’t see anything that would make us believe that CareCloud insiders doubt the company, and they do in fact own shares. While it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks a particular company faces. To that end, you should read up on the 4 warning signs We have found some things about CareCloud (including 1 that makes us feel a little uncomfortable).

If you would rather check out another company — one with potentially better financials — then don’t miss this free List of interesting companies with HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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