Joseph Whitters, a director at Accuray (ARAY) recently picked up 20,000 shares. The buy increased his holdings by over 7 percent, and came to a total cost of just over $100,000.
Whitters last bought 50,000 shares in November, at a price about 50 percent lower than where shares currently trade. Insiders have generally been sellers of shares at the company over the past three years.
Overall, insiders own 3.4 percent of the company. Accuray designs and develops healthcare equipment including therapy systems, robotic radiosurgery systems, and other technologies. Shares have performed well in the past year, even as revenues and earnings have declined as healthcare spending has shifted in response to the Covid-19 crisis.
Action to take: As a tech company, the large number of insider sales do not appear to be an issue. Shares could be an attractive play longer-term as healthcare spending shifts away from Covid and towards other pressing needs. The company’s robotics technologies and small size also make the company attractive as a potential buyout candidate.
Investors could buy shares here in the low $5 range. To play the new uptrend in shares underway, the September 2021 $6 call, last trading for about $0.90, offers high-double to low-triple digit return potential, but could move even higher on a big selloff in shares.