InspireMD (NSPR) reported four large insider buys last week. These came as the company announced the closing of an underwritten public offering of 12.5 million shares of its common stock at a price of $2.00 per share. The company received net proceeds of approximately $22.6 million from this public offering.
President and CEO Alan Milinazzo, Director Michael Berman, Director James Loughlin and Chairman of the Board Sol Barer all added shares. Chairman Sol Barer added the most by making a buy of 750,000 shares. This cost him $1.5 million.
The company initiated this public offering as the price of the company was sitting at an extended three-year low. These insider buys also mark the first insider transactions for the company.
InspireMD is a medical device company focusing on the development and commercialization of its proprietary stent platform technology - the MGuard net protective stent. Interestingly, the company serves 2 million patients worldwide despite the fact that their product is not available in Japan or America.
On March 15, the company announced that they had received the CE mark approval for its self-expanding Nitinol carotid Embolic Protection Stent. This product is designed to help people who’ve suffered a substantial heart attack or other coronary problem.
This product will be marketed in international markets, primarily in Europe and in Latin America.
The company reported its fiscal 2013 second quarter financials on Feb. 2. It reported revenue of $1.4 million, a net loss of $1.9 million and cash on hand of $5.4 million.
According to the GuruFocus analysis, the company’s revenue has been in decline over the past year. Also, InspireMD’s sales outstanding, as well as their inventory, have been building up. This means that the company is having trouble selling its product and/or it is having a difficult time gathering the payment on products it has already sold.
There are currently no gurus that hold a stake in InspireMD.
With its shares down 1.05%, InspireMD trades at $1.88.
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys:: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.