Exploring Modular Medical, Inc. (MODD) Investor Profile: Who’s Buying and Why?

You're looking at Modular Medical, Inc. (MODD) and seeing a classic high-risk, high-reward medical device play. Honestly, how do you square a staggering $18.8 million net loss for fiscal year 2025 against a tiny $26.5 million market capitalization, especially when the stock has dropped over 77% in the last year? It seems like a clear warning sign, but here's the defintely interesting twist: institutional investors, including big names like Vanguard Group Inc., still hold 31.8% of the company, controlling over 18.2 million shares. Why are these sophisticated funds buying into a development-stage company that just burned through cash, raising another approximately $12 million in a March 2025 private placement, and whose CEO, James Besser, bought shares at a much higher price? The answer lies in the Pivot tubeless patch pump, which Modular Medical just submitted to the FDA in November 2025, aiming to capture a piece of the estimated $3 billion adult diabetes market. Are these buyers chasing the next big medical breakthrough, or are they setting up for a painful dilution if the FDA clearance process drags on past the anticipated Q1 2026 commercial launch?

Who Invests in Modular Medical, Inc. (MODD) and Why?

If you are looking at Modular Medical, Inc. (MODD), you are not buying a stable, cash-flow-positive business; you are buying a high-stakes, pre-commercialization growth story. The investor base reflects this, split between sophisticated institutions betting on a regulatory win and a large contingent of retail investors hoping to catch the next major medical device breakout.

As of November 2025, institutional ownership sits at about 31.8% of the company, with insider ownership at 6.8%. This leaves the majority of shares, roughly 61.4%, in the hands of retail investors and other private holders. This split is typical for a micro-cap company awaiting a critical product launch. The institutions, however, hold a significant concentration of capital, totaling approximately 18.28 million shares.

Key Investor Types: The Institutional vs. Retail Divide

The institutional holders in Modular Medical, Inc. (MODD) are not your typical blue-chip asset managers. They are primarily specialized funds and hedge funds that focus on small-cap, event-driven, or healthcare-specific opportunities. They are comfortable with high risk for the potential of outsized returns.

• Hedge Funds: Firms like Solas Capital Management, LLC and 683 Capital Management, LLC are major holders. Their strategy is often event-driven, meaning they are positioning themselves for the stock price surge that would follow a successful FDA 510(k) clearance for the Pivot pump.
• Specialty Asset Managers: Companies such as Bard Associates Inc. and AWM Investment Company, Inc. are invested. These managers often specialize in micro-cap growth or distressed assets, seeing the current stock price of around $0.51 per share (as of November 10, 2025) as a deep value play if the commercial rollout is successful.
• Retail Investors: The largest group of owners are individual investors. They are often drawn to the story of a simplified, affordable insulin pump and the massive potential of the diabetes market. They are the ones who will drive the most volatility on news, both good and bad.

Honestly, the stock is defintely a binary bet right now: a successful launch means a huge win; a failure means a big loss.

Investment Motivations: Betting on the Pivot Pump

Modular Medical, Inc. (MODD) is not profitable, reporting zero revenue and an earnings per share (EPS) of -$0.51 as of the latest financial data. So, why are people buying? It all comes down to the Pivot tubeless patch pump and its market potential.

The primary motivation is pure, unadulterated growth. The company is targeting the massive $3 billion 'almost-pumper' market-the 70% of insulin-dependent adults who still use multiple daily injections instead of a pump. The Pivot pump is designed to be a simpler, more affordable entry point, aiming to break down the complexity and cost barriers that have kept these patients away from existing pump technology. The investment thesis is simple: secure FDA clearance, capture a small fraction of that $3 billion market, and watch the stock multiply. The recent submission of the 510(k) premarket application to the FDA in November 2025, with an anticipated commercial launch in Q1 2026, is the single most important catalyst driving investor interest.

Here's the quick math on the opportunity:

Investment Strategies: High-Risk, Event-Driven Plays

Given the development-stage nature of Modular Medical, Inc. (MODD), the strategies employed are highly speculative. You won't find traditional value investors here; the company's Piotroski F-Score is a low 3, which signals poor operational efficiency and financial health.

• Long-Term Growth Speculation: The core institutional strategy is a long-term hold, betting that the Pivot pump will achieve significant market penetration over the next three to five years. This is a high-risk growth investment focused on the product's technological advantage and market fit.
• Event-Driven Trading: Many investors are engaging in short-term trading around regulatory news. The FDA submission in November 2025 and the subsequent clearance decision are classic events that can cause massive price swings. You saw this in the volatility, where the stock price fell 77.05% over the year leading up to November 2025, but any positive news can reverse that sharply.
• Financing Arbitrage: The company raised approximately $4.4 million in October 2025 through the exercise of existing warrants. This type of financing activity often attracts investors who specialize in buying and selling around dilutive events and warrant exercises.

What this estimate hides is the high volatility, with a beta of 0.6 suggesting lower volatility than the broader market, yet the stock remains highly speculative due to its single-product focus and pre-revenue status. If you want a deeper dive into the company's balance sheet, you should check out Breaking Down Modular Medical, Inc. (MODD) Financial Health: Key Insights for Investors.

Institutional Ownership and Major Shareholders of Modular Medical, Inc. (MODD)

If you're looking at Modular Medical, Inc. (MODD), the first thing to understand is that institutional money-the big players like hedge funds and asset managers-holds a significant, and defintely influential, piece of the pie. As of the most recent filings in 2025, institutional investors collectively own roughly 27.47% of the company's stock. That's a sizable chunk for a micro-cap medical device company, signaling a strong belief in their core product: the MODD1 insulin pump.

The total value of institutional long positions is roughly $13.51 million, representing a total of 18.14 million shares held by 46 different institutional owners. This isn't passive index money; these are often active investors who have done deep diligence on the company's technology and its path to commercialization, especially since the FDA clearance of MODD1 in September 2024. They are betting on the execution of the Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Top Institutional Investors: Who's Buying Modular Medical?

The largest shareholders in Modular Medical are not the typical mega-funds, but rather specialized investment firms and hedge funds that focus on small-cap and emerging growth companies. This is a critical distinction, as their investment thesis is usually tied directly to a successful product launch and rapid market penetration, not just broad market movements.

Here's a look at the top institutional holders, based on filings reported up to September 2025, showing their stake in the company:

The two Manchester entities, along with Solas Capital Management, LLC and Bard Associates Inc., hold the most conviction. Their combined holdings represent a significant portion of the institutional float, meaning their actions carry weight. Solas Capital Management, LLC's position alone was valued at $3.52 million in a slightly earlier period.

Recent Shifts in Institutional Ownership: Accumulation or Retreat?

The trend in 2025 suggests a pattern of accumulation, especially among certain key players, which is typical for a company moving from development-stage to commercialization. Institutional shares (long) increased by 0.86 million shares in the most recent quarter, a change of 4.95%. This small-cap is seeing net institutional buying.

Here's the quick math: several firms have been actively adding to their positions. For example, Bard Associates Inc. significantly increased its stake by 47.1% in February 2025, and AWM Investment Company Inc. added 12.8% to its holdings in May 2025. This accumulation indicates that funds are positioning themselves ahead of anticipated revenue growth from the MODD1 launch, which is planned for the quarter ending September 30, 2025. Still, it's important to note that the overall institutional ownership percentage is relatively low, which leaves plenty of room for future growth or, conversely, rapid selling if the commercial launch falters.

• Bard Associates Inc. increased its stake by 47.1% in February 2025.
• AWM Investment Company Inc. increased its holdings by 12.8% in May 2025.
• Total institutional shares (long) saw a net increase of 4.95% in the recent quarter.

Impact of Institutional Investors on Stock and Strategy

For a company like Modular Medical, these large investors play a crucial role that goes beyond simply owning shares; they are the primary source of growth capital and a key strategic ballast. When a company needs to raise money to fund operations-like the March 2025 private placement that raised approximately $12 million-it's these existing institutional holders who often step up.

The impact is twofold:

First, Capital Validation: When a public offering of 9,090,910 shares for approximately $10 million is led by existing institutional investors, including the CEO's managed entity, Manchester Explorer, L.P., it provides a powerful vote of confidence to the broader market. This is critical for a pre-revenue company. Second, Strategic Influence: These investors, especially those with a 5%+ passive stake (Schedule 13G filers), can influence corporate governance and push for a disciplined approach to the commercialization strategy. They want to see the capital used efficiently to drive adoption of the MODD1 pump and develop the next product, the Pivot, which is expected to launch by March 31, 2026.

Action Item: Monitor the next round of 13F filings (institutional holdings reports) to see if the accumulation trend accelerated after the planned Q3 2025 product shipment date. Finance: Track institutional ownership changes weekly to gauge market sentiment on the MODD1 launch.

Key Investors and Their Impact on Modular Medical, Inc. (MODD)

Modular Medical, Inc. (MODD) is a development-stage medical device company, so its investor profile is less about dividend-focused institutions and more about funds with a high-conviction, specialized growth mandate. You're seeing a mix of small-cap specialists and hedge funds willing to back a pre-revenue company's commercialization push, which is a classic high-risk, high-reward bet.

As of November 2025, institutional investors hold a significant portion of the company, with ownership standing at approximately 31.8% of the stock. That's a decent chunk, and it means institutional trading drives a lot of the stock's daily movement. Insider ownership, the people who actually run the business, is also a healthy 6.8%, which signals management's financial interests are defintely aligned with shareholders.

The Largest Players: Who's Buying and Why

The investor base for Modular Medical, Inc. is concentrated among a few specialized funds, largely focusing on the small-cap and healthcare technology space. These funds are buying in because they believe in the long-term potential of the Pivot tubeless insulin patch pump to disrupt the diabetes market, specifically targeting the '$3 billion 'almost-pumper' market.'

The single largest institutional shareholder is Solas Capital Management, LLC. As of their latest November 2025 filing, they beneficially own approximately 7.7% of the common stock, representing 4,291,327 shares (including warrants). Solas is a hedge fund with a value-oriented, fundamental analysis approach, meaning they've done their deep dive on the product and the market opportunity. Other notable institutional holders include Bard Associates Inc, 683 Capital Management, LLC, Bleichroeder LP, and Alyeska Investment Group, L.P.

• Solas Capital Management, LLC: Largest institutional holder; passive stake (filed 13G).
• Vanguard Group Inc: Represents passive index exposure for broad market funds.
• 683 Capital Management, LLC: A hedge fund, often indicating a focus on special situations or deep value.

Investor Influence: Strategic Backing, Not Activism

The influence of these investors is currently more about providing necessary capital and strategic validation than it is about forcing management changes. Solas Capital Management's 13G filing, for example, explicitly states their position is passive and not for the purpose of influencing control. This is a development-stage company, so the primary power these investors wield is through their checkbook.

Simply put: they are funding the growth strategy. The company's immediate future hinges on the successful commercialization of its Pivot pump, and the investors' implicit approval of the strategy is the most important signal. When you look at the financials for the 2025 fiscal year, the net loss was $18.8 million, and the net loss for the six months ended September 30, 2025, was $14.49 million. You don't fund a company burning cash like this unless you believe the product is a game-changer. The stock's volatility is a direct reflection of market sentiment around the FDA clearance timeline and commercial launch, which you can read more about here: Modular Medical, Inc. (MODD): History, Ownership, Mission, How It Works & Makes Money.

Recent Moves Map to Commercialization

The most important recent moves by the investor base are tied directly to capital raising, demonstrating a clear commitment to funding the Pivot launch. This is the quick math on their recent support:

In March 2025, Modular Medical, Inc. completed a private placement, raising approximately $12 million in gross proceeds. This was a crucial injection of capital to support supply-chain optimization for the MODD1 and the eventual Pivot launch. Then, in September 2025, the company raised an additional approximately $4.4 million in gross proceeds through the exercise of existing warrants. This continuous funding is what allows the company to execute its plan, including the November 14, 2025, submission of the Pivot pump for FDA 510(k) clearance.

The table below summarizes the key institutional support and the company's financial need for it:

The action here is clear: investors are betting on the Pivot product, and their recent capital contributions are the fuel for the final push toward the commercial launch expected in the first quarter of 2026, pending FDA clearance.

Market Impact and Investor Sentiment

You need to know who is buying Modular Medical, Inc. (MODD) and why, because the investor base for a development-stage company like this tells you exactly how much risk appetite is in the room. The current sentiment is a cautious mix of institutional hope and retail speculation, driven entirely by the Pivot insulin pump's regulatory path.

The investor profile is not what you'd call a rock of stability. Institutional ownership stands at a moderate 38.87% of the float, which suggests some professional money managers are willing to take a calculated risk on the company's technology. Insider ownership, however, is relatively low at about 6.7% of the company, though the CEO's recent actions show personal conviction.

For a pre-revenue medical device company, this split is typical: Institutions are betting on the product pipeline and the massive addressable market-the $3 billion adult 'almost-pumpers' segment-while the stock's volatility keeps the retail crowd active.

Major Shareholders: Conviction Despite the Dip

The most telling sign of conviction comes from the company's leadership. Over the last 12 months, CEO Jeb Besser made the largest individual insider purchase, buying 277.25k shares at an average price of $1.82 per share. That's a strong signal, honestly, especially since the stock was trading around $0.58 in mid-October 2025. He bought at a much higher price, so his personal investment is defintely underwater right now, but it shows a long-term belief in the business model.

Here's the quick math on the company's financial health for the fiscal year ended March 31, 2025 (FY 2025):

• Net Loss: $18.8 million
• Net Loss Per Share (EPS): $0.51
• Total Operating Expenses: $19.0 million

What this estimate hides is the cash burn. While Modular Medical, Inc. maintains strong liquidity with a current ratio of 4.04, analysts note the company is quickly burning through its cash reserves. They ended FY 2025 with a cash balance of $13.1 million, and that capital is being deployed into Research and Development, which saw a 14.1% increase to $14.7 million in FY 2025.

Recent Market Reactions and Capital Moves

Market reactions have been a roller coaster, tied directly to financing and regulatory milestones. The stock price has declined nearly 70% over the past year (as of September 2025), reflecting the inherent risk of a development-stage medical device company. Still, investors showed support by exercising warrants in September 2025, which generated approximately $4.4 million in gross proceeds for the company.

The most recent market catalysts in November 2025 have been the FDA 510(k) premarket notification submission for the next-generation Pivot tubeless patch pump and the Institutional Review Board (IRB) approval for an in-house insulin delivery study. These are critical de-risking events, moving the company closer to its anticipated commercial launch in Q1 2026.

The market's response to the November 14, 2025, earnings report was less enthusiastic, with the actual EPS of -$0.14 missing the consensus estimate of -$0.10. This highlights the market's focus on the near-term cash burn alongside the long-term product vision.

Analyst Perspectives: A High-Risk, High-Reward View

Analysts are split, which is understandable for a stock that is essentially a call option on FDA clearance. The consensus recommendation score is a moderate 2, but some analysts have set a price target as high as $8 (as of September 2025), suggesting a potential upside of over 10x from the current trading range. That's a massive implied return, but it is contingent on a successful commercial launch.

The bearish perspective is grounded in the fundamentals: a low Piotroski F-Score of 3, which signals poor operational efficiency, and a moving average trend that is leaning bearish as of mid-November 2025. The bullish case rests on the innovative design of the Pivot pump-the first tubeless, removable 3 ml patch pump-and the potential to capture market share from traditional, more complex insulin delivery systems. You can learn more about their long-term strategy here: Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

The investment thesis hinges on the successful transition from a development-stage entity to a commercial one. Here is a snapshot of the risk/reward trade-off:

Your clear action now is to monitor the FDA's initial questions on the 510(k) submission, expected in Q4 2025. That feedback will be the next major indicator of whether the market's risk premium is justified.