InfuSystem (NYSE:INFU) Trading 2.3% Higher - Should You Buy?

Key Points

• InfuSystem shares rose 2.3% on Tuesday, trading as high as $9.20 before closing near $9.15. Volume was slightly below average at about 150,542 shares.
• The company announced a $20 million stock buyback program authorized by its board, covering up to 10.2% of outstanding shares. Buybacks often signal management believes the stock may be undervalued.
• Insiders have been buying shares, including Director Paul Andrew Gendron and CFO Barry G. Steele, while institutional ownership remains high at 71.13%. These purchases may be viewed as a sign of confidence in the company.

InfuSystem Holdings, Inc. (NYSE:INFU - Get Free Report)'s share price was up 2.3% during trading on Tuesday . The company traded as high as $9.20 and last traded at $9.15. Approximately 150,542 shares changed hands during trading, a decline of 11% from the average daily volume of 169,051 shares. The stock had previously closed at $8.94.

InfuSystem Stock Up 2.3%

The business has a fifty day moving average of $9.29 and a 200 day moving average of $9.13. The company has a quick ratio of 1.59, a current ratio of 1.98 and a debt-to-equity ratio of 0.50. The firm has a market cap of $184.67 million, a P/E ratio of 152.53 and a beta of 1.40.

InfuSystem declared that its board has initiated a stock buyback program on Tuesday, May 19th that authorizes the company to buyback $20.00 million in shares. This buyback authorization authorizes the company to purchase up to 10.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insider Transactions at InfuSystem

In other news, Director Paul Andrew Gendron purchased 5,000 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were acquired at an average cost of $8.88 per share, for a total transaction of $44,400.00. Following the transaction, the director directly owned 70,000 shares of the company's stock, valued at approximately $621,600. The trade was a 7.69% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, CFO Barry G. Steele acquired 7,000 shares of InfuSystem stock in a transaction that occurred on Friday, May 8th. The shares were purchased at an average cost of $8.71 per share, for a total transaction of $60,970.00. Following the purchase, the chief financial officer directly owned 96,590 shares in the company, valued at $841,298.90. The trade was a 7.81% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 15,000 shares of company stock valued at $131,490. 10.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On InfuSystem

Several hedge funds have recently bought and sold shares of the company. Quarry LP bought a new position in shares of InfuSystem during the fourth quarter worth $31,000. Raymond James Financial Inc. bought a new stake in shares of InfuSystem in the 2nd quarter valued at $33,000. Virtu Financial LLC acquired a new stake in InfuSystem during the 4th quarter worth $90,000. LPL Financial LLC acquired a new stake in InfuSystem during the 4th quarter worth $92,000. Finally, Boothbay Fund Management LLC acquired a new stake in InfuSystem during the 4th quarter worth $98,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

About InfuSystem

InfuSystem Holdings Inc is a medical technology company that specializes in the rental, management and servicing of infusion pumps and associated devices used primarily for outpatient infusion therapy. The company provides a comprehensive suite of services that includes equipment delivery, setup and retrieval, preventive and corrective maintenance, reprocessing and quality assurance. InfuSystem's offerings are designed to help hospitals, ambulatory surgery centers, oncology clinics and private infusion suites streamline clinical operations and maintain compliance with safety standards.

In addition to pump rental and repair services, InfuSystem has expanded into remote patient monitoring solutions.

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