Insider Buying

Insider Buying Report: Surgalign Holdings Inc (SRGA:US)

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Surgalign Holdings Inc
(SRGA:US)
12 months:
-66%
Activity:
Bullish
Pattern:
Large purchases from CEO
News:
Solid Q2 results
Surgalign Holdings Inc
(SRGA:US)
12 months:
-66%
Activity:
Bullish
Pattern:
Large purchases from CEO
News:
Solid Q2 results

If a CEO is buying company stock, it’s often worth investigating the stock further. CEOs tend to have an intimate understanding of their businesses and are usually way ahead of analysts and portfolio managers when it comes to revenue and earnings trends.

In this report, we are going to highlight a CEO purchase at Surgalign Holdings Inc (SRGA:US). Surgalign is a US company that specializes in spine solutions. Committed to new product innovation, it offers a comprehensive line of spine products backed by clinical research. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $141 million.

Surgalign Holdings Inc: Insider Buying

Our data shows that between 11 August and 13 August, CEO Terry Rich bought Surgalign stock on three occasions. In total, the insider added 1,078,701 shares at prices of between $0.91 and $0.94 per share, spending just over $1 million on stock. This increased his holding to 2.773 million shares.

High-conviction Buying

This trading activity is worth highlighting for several reasons. Firstly, Rich has spent a substantial amount of money on SRGA stock.

Secondly, Rich has increased the size of his stake by 64%. This suggests he is very confident the stock will move higher. Our Insider Model views this buying activity as positive.

It’s worth noting that Rich has over 25 years of orthopedic, spine and medical device business experience. Prior to joining the group, he led the turnaround of Alphatec Spine from December 2016 through December 2018.

‘Incredible’ Potential

Surgalign recently posted a solid set of second-quarter results.

For the period, total global spine revenue amounted to $24.8 million, compared to $20.5 million in the second quarter of 2020, while net loss from continuing operations was $10.6 million, versus $24.9 million last year.

During the quarter, the company submitted the initial 510(k) to the FDA for its Holo digital surgery platform – a revolutionary Augmented Reality and Artificial Intelligence platform to enable digital spine surgery. The company advised that it remains on track to have the first procedures performed using the Holo platform by the end of 2021.

Looking ahead, Surgalign said that it expects Covid-19 to continue presenting challenges in the near term. This year, revenue is expected to be roughly in line with revenue last year. However, in the long run, it is excited about the potential of the Holo platform.

“We see the incredible potential of the Holo platform to evolve the way surgery is performed, and we have put together a world-class team to drive our transformation into a digital medical technology company,” said Mr. Rich.

In light of the confident tone from Mr. Rich, we see the insider buying here as a bullish indicator.

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