The Monash IVF Group Ltd (ASX: MVF) share price is on course to have a strong finish to the week.
In afternoon trade the fertility company's shares are up over 4.5% to $1.26.
Why are its shares higher today?
Earlier this week Monash IVF provided a disappointing trading update which revealed a loss of market share and half-year guidance for a 20% decline in net profit after tax.
This unsurprisingly led to a sharp sell-off of its shares, sending them down to a multi-year low.
Analysts at Morgans saw this as a buying opportunity and upgraded its shares and the shares of rival Virtus Health Ltd (ASX: VRT) to an add rating.
But it wasn't just Morgans that saw value in the fertility treatment company's shares.
This morning it was revealed through no less than three change of director's interest releases, that three of its directors have been snapping up shares on market over the last few days.
CEO David Morris bought 100,000 shares on market, Zita Peach acquired 15,400 shares on market, and Christina Boyce snapped up an additional 30,000 shares on market.
It would appear as though these directors feel that Monash IVF is great value following its recent declines.
Should you invest?
While insider buying is a big positive and could be a sign that Monash IVF is undervalued, I'm still not convinced that things will improve enough in the short-term to warrant an investment just yet.
My main concern is the impact that the loss of its popular doctor Lynn Burmeister will have on the business in FY 2019. Management has previously warned that her exit has the potential to cause a high single-digit percentage decline in net profit after tax in FY 2019 when her non-compete period expires.
I intend to sit this one out until there are signs of improvement and would suggest investors consider healthcare peer Ramsay Health Care Limited (ASX: RHC) instead.
