In a recent transaction, Nicholas Stewart Green, the President and CEO of Avid Bioservices, Inc. (NASDAQ:CDMO), sold 7,657 shares of the company's common stock. According to the filing with the Securities and Exchange Commission, the shares were sold at an average price of $7.54, totaling over $57,733.
The transaction took place on July 10, 2024, following an earlier acquisition of shares. It's worth noting that the sales were executed at prices ranging from $7.53 to $7.555, as detailed in the SEC filing footnotes. This sale was part of a pre-arranged plan to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs), and it does not represent a discretionary market trade by Green.
The RSUs mentioned in the transaction are part of an incentive plan where each unit represents the right to receive one share of Avid Bioservices' common stock upon vesting. The vesting of these units is contingent upon continuous service to the company and meeting certain performance milestones over a specified period.
Following the sale, Green's direct ownership in Avid Bioservices stands at 212,314 shares, indicating his continued investment in the company's future. It's important for investors to consider the context of such transactions, as they can be related to personal financial management, tax obligations, or incentive compensation plans rather than a reflection of the executive's confidence in the company's prospects.
Avid Bioservices specializes in pharmaceutical preparations and has undergone several name changes in its history, with its roots tracing back to Techniclone International Corp. The company remains headquartered in Tustin, California, and continues to be a key player in the life sciences and biopharmaceutical sectors.
In other recent news, Avid Bioservices reported record revenues for the fourth fiscal quarter of 2024, with revenues slightly exceeding expectations by about 2%. Despite a 6% decrease in full fiscal year revenues, the company's quarterly revenue increased by 8% year-over-year, reaching $43 million. Avid Bioservices also provided an optimistic revenue guidance for fiscal year 2025, projecting revenues between $160 million and $168 million, suggesting a significant year-over-year growth.
KeyBanc Capital Markets maintained its Overweight rating on Avid Bioservices, acknowledging that the company surpassed revenue expectations yet noted that order intake fell short. However, RBC Capital maintained its Outperform rating on Avid Bioservices, emphasizing the importance of bookings in evaluating the company's future performance and outlook.
Avid Bioservices expressed confidence in its growth, citing a surge in interest for its newly expanded capacity, especially from large pharmaceutical companies, and positive developments in the gene therapy sector. The company anticipates that margins will improve as capacity utilization increases. These recent developments are attributed to the launch of the company's new cell and gene therapy manufacturing facility and a trend towards onshoring drug manufacturing in the U.S.
InvestingPro Insights
In light of the recent insider transaction involving Avid Bioservices, Inc.'s President and CEO Nicholas Stewart Green, investors may find it valuable to consider the broader financial picture of the company as depicted by InvestingPro data and insights.
According to InvestingPro data, Avid Bioservices currently holds a market capitalization of approximately $507.38 million. Despite the company's efforts in the biopharmaceutical sector, it has been challenged by a negative revenue growth rate of -6.27% over the last twelve months as of Q4 2024. This may raise concerns about the company's ability to expand its sales in the near term.
The company's financial health is further reflected in its gross profit margin, which stands at a modest 5.23% for the same period. This indicates that Avid Bioservices is retaining only a small portion of its revenue as gross profit, an aspect that is highlighted by one of the InvestingPro Tips, which points out the company's weak gross profit margins.
Another noteworthy metric is the company's Price / Book ratio, which, as of the last twelve months of Q4 2024, is at a high 8.35. This suggests that the market is valuing the company's net assets at a significant premium, which is corroborated by another InvestingPro Tip indicating that Avid Bioservices is trading at a high Price / Book multiple.
While the recent insider sale by CEO Nicholas Stewart Green was for tax obligations related to RSUs and not a market trade, investors may want to take these financial metrics into account when assessing the company's current valuation and future prospects. For those seeking further guidance, there are additional InvestingPro Tips available that delve deeper into Avid Bioservices' financials and market position. Interested readers can access these insights by visiting https://www.investing.com/pro/CDMO and can benefit from a discount on a yearly Pro and a yearly or biyearly Pro+ subscription using the coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.