Top-level insiders such as CEOs and Chairmen tend to have the best understanding of their companies’ operating activities. If these individuals are buying company stock, it’s often a sign that the outlook for the business, and the share price, is attractive.
In this report, we are going to highlight a large purchase by Chairman at Definitive Healthcare (DH:US). Definitive Healthcare is a healthcare-focused technology company that offers a SaaS platform. Its aim is to transform data, analytics, and expertise into commercial intelligence. The company is listed on the Nasdaq and currently has a market cap of approximately $1.2 billion.
Insider Buying at Definitive Healthcare
Our data shows that on November 7, Founder and Executive Chairman Jason Krantz purchased 450,000 DH shares at a price of $11.5 per share. This trade cost the insider approximately $5.2 million.
There are unlikely to be many people who have a better understanding of Definitive Healthcare’s prospects than Mr. Krantz. He founded the business in 2011 and today, oversees the overall vision of the organization.
It’s worth noting that Mr. Krantz has had success in this industry before. Prior to founding Definitive Healthcare, he founded and served as CEO of Infinata, a SaaS based provider of intelligence to the pharmaceutical industry. It was sold to Pearson Media Group in 2007.
Multiple Customer Wins
Definitive Healthcare’s Q3 results showed that the company continues to make progress.
For the quarter, the company posted revenue of $57.4 million, an increase of 33% from Q3 2021. Adjusted net income came in at $8.9 million, compared to $2.2 million in Q3 2021, while unlevered free cash flow was $15.5 million.
“We once again delivered an attractive combination of strong top line growth and substantial profitability. Revenue exceeded the top end of our guidance range and adjusted EBITDA was at the top end of our range, a clear demonstration of our highly efficient business model,” commented Robert Musslewhite, CEO of Definitive Healthcare.
During the quarter, the company had multiple key customer wins, including a multi-year, seven-figure Monocl win with an existing medical device customer and a multi-year enterprise deal at a global specialty generic pharmaceutical company.
In light of these developments, we see the insider buying here as a bullish indicator.