Insider trades can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its executives and directors.
Here, we are going to look at recent insider buying at Orasure Technologies Inc (OSUR:US). OraSure Technologies is an American company that focuses on the medical devices industry. The company produces medical testing kits globally for infectious diseases such as Covid-19, Ebola, HIV, HCV, and Influenza as well as other medical devices. It’s traded on the Nasdaq Stock Exchange and currently has a market capitalization of $279.58 million.
Insider buying at OraSure Technologies
Our insider transaction data shows that between August 12 and August 26, four insiders at OraSure Technologies bought stock. Those who bought shares were:
- Chairman of the Board Michael Celano (12,000 shares @ $4.49 per share)
- Board member Nancy Gagliano (2,200 shares @ $4.39 per share)
- Board member Mara Glickman Aspinall (6,000 shares @ $4.14 per share)
- Board member Ronny Lancaster (50,000 shares @ $4.00 per share)
In total, the four insiders spent around $290,000 on OraSure Technologies stock.
Experienced industry insiders
This insider buying is worth highlighting for a couple of reasons.
Firstly, all three of the insiders have considerable experience in the medical industry. Dr Gagliano has been at OraSure Technologies for less than a year, but she has decades of experience in industry. She was previously the Chief Medical Officer at Minute Clinic and was the Managing Director of Granite Healthcare Advisors. Her role as executive leader of the National Institute of Health’s RadX Tech program saw her oversee more than $1 billion of programs to bring millions of Covid-19 tests to market.
Mr. Lancaster has been at the company for 19 years and prior to this he spent 13 years in the specialist insurance sector as a Senior Vice President of Federal Government Relations. He was COO of Morehouse School of Medicine before this.
Mr. Celano has been a Board Member at OraSure Technologies for 17 years and has been Chairman since 2018. He has held a number of CFO positions in the medical industry, his most recent CFO positions being at Larimar Therapeutics, Recro Pharma and Drugscan Inc.
Secondly, it is noteworthy that Mr. Lancaster has upped his stake by close to 50%. He has been with the company for close to 20 years and is therefore likely to know the business extremely well. The fact that he has increased his stake by such a large percentage suggests he is very confident that the market is mispricing the stock.
OraSure Technologies recently produced solid Q2 results, boosted by revenues of InteliSwab, which offset headwinds in the core business.
Net revenues for the second quarter of 2022 were $80.2 million, a 39% increase year on year, and a new record for the group. Meanwhile, total revenues from the company’s Diagnostic business unit were $60.4 million, up 213% year on year. Revenue growth here was driven by InteliSwab, which grew 95% sequentially and offset a 10% decline in the base Diagnostic business.
Looking ahead, the company forecast revenue of $90 to $95 million for Q3, representing 67% to 76% growth relative to the third quarter of 2021. It also said that it expects improvements in gross margins, and improved cash flow from operations in the third quarter. It expects positive cash flow from operations in the fourth quarter.
“We see an important strategic niche for OraSure as a Company leveraging our strengths in the face of current shifts in healthcare delivery. We are dedicated to facilitating testing and sample collection for patients at the point of care. We are committed to driving sustained profitable growth over the long-term and to unlocking shareholder value,” commented CEO Carrie Eglinton Manner.
Having looked at the Q2 results, we see the recent insider buying at OraSure Technologies as bullish.