In this report, we are going to highlight some interesting insider buying at a small, US-listed company, LifeMD Inc (LFMD:US). LifeMD is a direct-to-patient telehealth provider. Its aim is to be the premier provider of virtual healthcare in America. It’s listed on the Nasdaq and currently has a market cap of around $157.4 million.
Our data shows that between August 29 and August 31, board member Bertrand Velge made three stock purchases. Paying between $3.58 and $3.93 per share, he picked up a total of 132,072 shares, investing around $501,000 in the company. This trading activity took his holding to 349,482 shares.
This trading activity is notable for several reasons.
Firstly, Mr. Velge has more than 25 years’ experience in early-stage company investing. Currently, he is a managing director and co-founder of a family office that trades IPOs, equities, and forex securities.
Secondly, he has made a large $501K purchase that has increased his holding by nearly 65%. This suggests that he is very bullish on the stock right now.
Third, he has made some well-timed purchases here in the recent past. In June, he bought a substantial amount of stock when it was trading under $3.
Positive Free Cash Flow
LifeMD recently posted strong Q2 results.
Highlights of the quarter included:
Record revenue of $35.9 million, up 18% year on year.
Positive free cash flow, ahead of guidance.
Adjusted EBITDA of $1.7 million versus an adjusted EBITDA loss of $6.9 million a year earlier.
The launch of a comprehensive Weight Management program.
Given early success with the Weight Management program, the company raised its 2023 revenue guidance to $146 million to $152 million.
“The second quarter of 2023 was a breakout quarter for LifeMD. Record quarterly revenue was driven by increasing demand for our telehealth offering and we achieved positive free cash flow for the first time in our company’s history and ahead of guidance,” commented Chairman and CEO Justin Schreiber.
In light of these results, we see the insider buying here as a bullish development.