Insider Buying

2iQ Insider Brief: Oxford Immunotec Global (OXFD: US)

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Oxford Immunotec Global (OXFD: US)

12-month performance: -14%
Insider activity: Bullish
Buying pattern: Multiple purchases from CEO
Recent news: Launched Covid-19 test kit

Oxford Immunotec Global is a diagnostics company that is focused on developing and commercialising tests for under-served immune-regulated conditions. Its leading product, the T-SPOT®.TB test, is used for diagnosing infection with Tuberculosis – the largest cause of death from infectious disease. The company is listed on the NASDAQ Global Market and currently has a market capitalisation of $325 million.

Oxford Immunotec Global shares jumped recently after the company announced the release of its T-SPOT Discovery SARS-CoV-2 test kit, which is designed to study the body's immune response to Covid-19. This kit, which is for research use only and has been launched under the T-SPOT Discovery brand, leverages Oxford Immunotec’s experience with TB diagnosis and applies the company’s established, proprietary T-SPOT technology to the fight against Covid-19. In a statement, the company said: “This research kit could make a significant contribution towards development of a new tool to manage the Covid-19 pandemic, which in turn could help to bring nations out of their current lockdowns in a faster, safer and more controlled manner.”

oxford ummunotec chart                      Source: 2iQ Research

What looks interesting here is the fact that CEO Peter Wrighton-Smith – who founded the company in 2002 – has purchased OXFD stock three times so far this month. Between 8 May and 12 May, the insider acquired 43,600 shares, spending a total of $500,000 on shares. This buying activity, which boosted his personal holding by 12%, represented the largest amount of insider buying at Oxford Immunotec in over two years. It’s also worth pointing out that Chairman of the Board Patrick Balthrop Sr. purchased 4,000 shares on 20 May, spending $50,000 on stock. Two top-level insiders buying is a bullish signal, in our view. Given this insider buying, we think the outlook here is favourable.