GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

DRAD Directors Increase Their Stake in the Medical Supply Company

April 25, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Two directors at Digirad Corporation (DRAD) are continuously adding to their stake in the company. The directors, Jeffrey Eberwein (chairman) and Charles Gillman bought 9,000 shares each this week for a combined 18,000 shares. These shares traded at an average price of $2.60.

Since the beginning of April, Eberwein and Gillman have added a total of 84,000 shares. Also, since the beginning of April, the price per share has increased 5.62%

Chairman of the Board Jeffrey Eberwein has been consistently increasing his stake in NTS Inc. (NTS) where he also serves as a director. Recently, Eberwein has seen growth in both companies.



These buys came as the price of the company hit its previous 52-week high price of $2.60.

Digirad develops, manufactures and distributes solid-state medical imaging products and services for use in detecting cardiovascular diseases as well as other medical problems. The company designed the first solid-state gamma camera.

The income statement of Digirad shows that the revenue for the company has been declining since 2008. The company has also seen a net losses due to the decrease in revenue and generally high cost in expenses. Digirad’s income has been in the red before depreciation, depletion and amortization has even been taken out for the past four years. Despite these factors, the company still holds no debt.

Market Cap: 51.06 M P/E: n/a Shiller P/E: n/a
P/B: 1.4 P/S: 1.0035 EV/EBITDA: n/a
52 Week Low: 1.73 52 Week High: 2.66 Average Volume: 55,674


On March 13, the company announced its plan to increase its share buyback practices by establishing a new CEO ownership policy that requires significant equity participation equal to three times the CEO’s base salary. The restructuring increased the share buyback from $7 million to $12 million. It also adopted the resolution to require shareholder approval for any acquisition exceeding $5 million in purchasing prices.

“These changes demonstrate the shareholder orientation of this Board and our commitment to continually enhance our corporate governance,” said Chairman Jeffrey Eberwein. “Moving forward, management and the Board will maintain a clear focus on executing the business plan and returning value to shareholders—by direct means such as share buybacks and by enhancing our market value by growing cash flow per share over time.”

Jim Simons currently holds 767,700 shares of Digirad.

With its shares up 1.14%, DRAD trades at $2.66.

To see Digirad’s complete list of insider trades, look at the company’s insider trade history.

Rating: 4.2/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK