Louis Hernandez Jr. (Insider Trades), CEO, president and chairman of Avid Technology Inc. (AVID), acquired 150,000 shares in the company on May 9.
Avid Technology delivers a comprehensive media platform connecting content creation with collaboration, asset protection, distribution and consumption for media organizations and creative professionals. The price per share was $5.76 for a total transaction of $864,000.
The number and volume of insider buys increased from five transactions totaling 249,000 in 2014 to 10 transactions totaling 398,000 in 2015. The number of insider sells also increased from zero in 2014 to four transactions totaling 571,381 shares in 2015.
Hernandez made one transaction with Avid Technology, not including the aforementioned transaction in May 2016. Hernandez’s previous transaction of 20,000 shares at a per share price of $9.42 has decreased by about 40% in value since August 2015. Ilan Sidi (Insider Trades), interim CFO and vice president of Human Resources, acquired 10,000 shares of the company on May 10 for a per share price of $5.67. The increase in the number of insider trades during 2015 corresponds to a decrease in month-end price in the last half of the year. 
For more information about insider transactions with Avid Technology, click here.
The company reported total revenue of $143.55 million for the three months ended March 31. Total revenue is up from $119.59 million reported in the first quarter of 2015. Net income also increased from a loss of $169,000 to a gain of $20.93 million. Hernandez commented that the first quarter of 2016 “demonstrates the continued momentum” of the company and “increased adoption of the Avid MediaCentral Platform by [the company’s] global base of customers.” Annual revenue follows an increasing trend line despite decreasing 8.5% since 2011. Annual net income also follows an increasing trend line. 
On May 3, the company announced the results of a strategic global alignment focused on helping the company better serve its customers. The multiyear plan includes hiring hundreds of experienced media professionals at new facilities in Asia, Europe and the U.S. Hernandez commented that the global alignment strategy would help Avid in its goal to be “focused on providing the industry-leading innovation and support that [its] customers around the world need.”
According to GuruFocus.com information, Avid Technology has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
Chuck Royce (Trades, Portfolio) increased his stake in Avid Technology by 29.39%, purchasing 207,000 shares at an average per share price of $7.10. Royce reduced his stake in the company consistently over the previous three quarters. The total estimated loss of the holding since the fourth quarter of 2014 is 19%. For more information about guru transactions with Avid Technology, click here.
Start a free seven-day trial of Premium Membership to GuruFocus.
