What happened

Shares of ViewRay (NASDAQ:VRAY), a medical equipment provider that has had a very tough week, are on the upswing again. Shares rose 12% as of 11:42 a.m. after an SEC filing showed that an insider has been adding to his position after this week's drubbing.

So what

Shahriar Matin, ViewRay's COO, purchased 60,000 shares of stock on the open market on Wednesday at a price of $4.02 per share.

That $240,000 purchase is being viewed as a big vote of confidence in the company's future. Traders are bidding up shares in response to insider buying at today's depressed prices.

Finger hitting keyboard button that says buy.

Image source: Getty Images.

Now what

It's always nice when insiders choose to buy shares on the open market. This executive wouldn't do that unless he felt confident in ViewRay's long-term potential.

There might be a lot of value in ViewRay's stock today, but that doesn't change the fact that management recently lowered its full-year guidance and the company is still burning through capital each quarter. Another capital raise will likely need to take place at some point. Being forced to do so while the share price is so low could be extremely dilutive to existing shareholders.

That's why my view remains that this stock is still too risky to touch.