The trading patterns of insiders can provide powerful insights for investors. No one has more information on a company’s products or prospects than its executives and directors. If these insiders are buying stock, it’s a sign they’re confident about the future.
Here, we are going to highlight interesting insider buying at Quidel Corp (QDEL:US). Quidel is engaged in the development and manufacturing of diagnostic testing solutions. Earlier in the year, it was awarded emergency use authorization by the US Food and Drug Administration (FDA) for its Covid-19 antigen test. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $6.4bn.
Quidel Corp: insider buying
Form 4 filings show that since early August, multiple insiders at Quidel have purchased shares. The insider buys are listed below:
- 3 August: Director Edward Michael purchased 3,500 shares @ $288.12 per share
- 11 August: President and CEO Douglas Bryant bought 5,000 shares @ $234.12 per share
- 31 August: President and CEO Douglas Bryant bought 5,000 shares @ $174.99 per share
- 2-3 September: Director Matthew Strobeck purchased 7,700 shares @ $166.08 per share
Source: 2iQ Research
We believe this insider buying is worth highlighting for a few reasons. Firstly, these are large purchases. Combined, these insiders spent around $4.3 million on QDEL stock. This represents the largest amount of insider buying within a quarter at Quidel for several years.
Secondly, we like the fact that President and CEO Douglas Bryant has increased his stake. Generally speaking, CEOs have the most-up-to-date information on their companies’ operations and near-term prospects.
Share price fall
Quidel stock has plummeted over the last month after rival Abbott Laboratories won US marketing authorization for a portable Covid-19 antigen test. The Trump administration said that it will purchase 150 million Covid-19 tests from Abbott Laboratories for about $750 million.
However, Quidel has said that Abbott's entry into the coronavirus antigen testing market does not change its strategy or financial forecast. The fact that insiders are buying stock suggests that they are genuinely confident.
All things considered, we see this insider buying at Quidel Corp as a bullish signal.