Nicholas Stewart Green, President and CEO of Avid Bioservices, Inc. (NASDAQ:CDMO), recently executed significant stock transactions, as disclosed in a recent SEC filing. On December 26, Green sold a total of 145,911 shares, generating approximately $1.78 million. These sales were made at a price of $12.22 per share, near the stock's 52-week high of $12.48. The timing is notable as CDMO shares have surged over 71% in the past six months.
In addition to the sales, Green also acquired shares through the exercise of options. On December 25, he acquired 303,531 shares of common stock. These transactions are part of the company's ongoing equity compensation plans and contractual obligations related to tax withholding. For deeper insights into insider transactions and comprehensive financial analysis, consider exploring InvestingPro, which offers exclusive access to detailed insider trading patterns and valuation metrics.
The transactions highlight Green's active management of his equity holdings in Avid Bioservices. The company, headquartered in Tustin, California, is a contract development and manufacturing organization specializing in biopharmaceutical products. With a market capitalization of $784 million, the company currently faces profitability challenges, reporting a gross profit margin of 7.7% in the last twelve months.
In other recent news, Avid Bioservices has been in the spotlight due to a series of developments. The company reported Q2 FY2025 revenues that aligned with Stephens' projections, despite slightly missing consensus. However, the company's backlog and bookings fell short of estimates, with a backlog of approximately $220 million and bookings around $35 million. In an unexpected turn of events, Avid Bioservices announced it will be acquired by GHO Capital Partners (WA:CPAP) and Ampersand Capital Partners for $12.50 per share, leading to the suspension of its FY2025 guidance.
This acquisition, valued at approximately $1.1 billion, has led RBC Capital to downgrade Avid Bioservices from Outperform to Sector Perform, though the price target was increased to $12.50. The company also reported a 6% revenue increase to $40.2 million in Q1 FY2025, despite a net loss of $5.5 million.
Additionally, Avid Bioservices has made changes to its executive compensation framework, including the expansion of its 2018 Omnibus Incentive Plan and the amendment of its 2010 Employee Stock Purchase Plan, which received stockholder approval. These recent developments reflect Avid Bioservices' commitment to growth and shareholder alignment.
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