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 highlight insider buying at Oxford Biomedica Ltd (OXB: LN). Oxford Biomedica is a UK company that operates in the pharmaceutical sector, specializing in gene and cell-based therapy, as well as vaccinations. Using its in-house capabilities, it develops medicines and also undertakes research and manufacturing. It’s traded on the London Stock Exchange and currently has a market capitalization of £494.73 million.
Oxford Biomedica Ltd: Insider Buying
Our insider transaction data shows that between April 20 and April 21, three insiders at Oxford Biomedica bought stock. Those who bought shares were:
● Acting CEO Frederic Doliveux (87,219 shares @ £5.71 per share)
● CFO Stuart Paynter (3,915 shares @ £5.08 per share)
● Deputy Chairman Stuart Henderson (1,000 shares @ £5.89 per share)
In total, the three insiders spent just over £500,000 (approx. $680,000) on Oxford Biomedica stock.
Top-Level Insider Buying
We think these insider trades are interesting for a couple of reasons.
Firstly, it is often a significant event when insiders at the very top of the company buy stock. The CEO is responsible for the strategy a company deploys and has real-time access to financial data, while the CFO similarly has access to real-time data and helps to guide a CEO on the actions he should be taking. It is therefore very interesting that the Interim CEO and CFO at Oxford Biomedica have bought company stock at the same time.
Secondly, the Interim CEO has spent close to £500,000 on Oxford Biomedica stock, and he has increased his holding in the company by just below 30%. This indicates to us that he firmly believes that the market has oversold the shares.
Oxford Biomedica produced a very strong set of 2021 results, benefiting from an agreement to manufacture the Oxford AstraZeneca Covid-19 vaccine on a large scale.
Total revenues for full-year 2021 jumped up by 63% to £142.8 million. The group generated an operating profit of £20.8 million which was a big improvement on the £5.7 million operating loss posted a year prior. The group generated £24.5 million in cash from operations over the year versus a negative £3.9 million of cash in the year before. Cash at the end of 2021 stood at £108.9 million and this had risen to £144 million by the end of March 2022.
Looking ahead, management was confident that the company can continue to perform.
“2022 will be another important year as we execute on our strategy to become a global viral vector leader, providing life-changing therapies and vaccines to patients. With the outsourced vector manufacturing supply market growing rapidly, we see significant potential to build upon our success with lentiviral vectors and expand the scope of our innovative process development and manufacturing to all classes of viral vectors,” said Dr. Doliveux, the Interim CEO.
Having looked through these results and picked up on the optimism within the outlook statement, we see the recent insider buying at Oxford Biotech as bullish. The Interim CEO appears to be very confident that the future prospects of the group are strong and he has purchased a sizable amount of stock, which suggests he believes the market has been too fearful and oversold the shares.