In a recent series of transactions, Nicholas Stewart Green, the President and CEO of Avid Bioservices, Inc. (NASDAQ:CDMO), sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Green sold a total of 226,653 shares of common stock over three days in December. The timing is notable as InvestingPro data shows the stock trading near its 52-week high of $12.48, having gained nearly 75% over the past six months.
The sales, executed on December 20th, 23rd, and 24th, were completed at prices ranging from $12.27 to $12.31 per share. The total value of these transactions amounted to approximately $2.79 million. For investors seeking deeper insights into insider transactions and comprehensive analysis, InvestingPro offers detailed research reports covering over 1,400 stocks, including Avid Bioservices.
Following these sales, Green no longer holds any shares of Avid Bioservices directly. This move comes as the company, currently valued at $785 million, continues its focus on pharmaceutical preparations, with its headquarters located in Tustin, California. While the company has shown strong stock performance, InvestingPro data indicates it remains unprofitable over the last twelve months.
In other recent news, Avid Bioservices has seen a flurry of significant developments. The company's second-quarter fiscal year 2025 results indicated revenue in line with Stephens' projections, yet slightly missing consensus. Avid Bioservices has also reported a backlog of approximately $220 million at the quarter's end, lower than the estimated $235 million. Stephens has reaffirmed its Equal Weight rating on the company, following the announcement of GHO and Ampersand's acquisition of Avid Bioservices for $12.50 per share in cash.
The acquisition, valued at approximately $1.1 billion, prompted RBC Capital to downgrade Avid Bioservices from Outperform to Sector Perform, despite increasing the price target to $12.50. Furthermore, Avid Bioservices has made substantial 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 endorsement.
KeyBanc analysts have maintained a positive outlook on Avid Bioservices, reiterating an Overweight rating. The company reported a 6% revenue increase to $40.2 million in the first quarter of fiscal year 2025, despite a net loss of $5.5 million. In addition, Avid Bioservices anticipates growth in adjusted EBITDA and margins, with a potential 40% to 60% increase in incremental revenue. These recent developments highlight Avid Bioservices' commitment to growth and shareholder alignment.
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