In the past week we saw an increase in insider buying coming
from the health care industry. Last week GuruFocus reported 31
different insider buys coming from 19 different health care-based
companies. These buys spanned across the sector from research and
development labs to pharmaceutical companies. The following four
companies are all a part of the medical supply sector of the
health care industry. They represent significant insider buys
coming from one or more directors or corporate executives.
The largest insider buy of the week was reported by Abiomed, a
medical devices company.
One of the company's directors, Henri Termeer, bought 100,000
shares of company stock at $19.86 per share. This cost the
director a total of $1,986,000. Termeer now holds on to at least
282,398 shares of Abiomed stock.
Despite Termeer's large buy, he was the
only insider making buys
last week. Three different insiders sold a total of 37,673
shares. As you can see in the graph below, the company's price
has recently jumped from its 52-week low to near a 10-year high
price of $24.62.
Since Termeer's buy, the price of the stock has increased by
Abiomed is a medical supply company that specializes in products
dealing with heart conditions and failure. The company develops,
manufactures and markets products that are designed to enable the
heart to rest, heal and recover by improving the blood flow
and/or performing the pumping function of the heart. Abiomed also
created and owns the Impella which is the world's smallest heart
The increase in insider activity is coming from the record fourth
quarter fiscal 2013 that the company had. Some of the quarter's
� The revenue was $43.7 million, compared to the same
period 2012 which was $37.3 million
� GAAP net income was $3.7 million, or $0.09 per
diluted share, up from $2.6 million, or $0.06 per diluted share,
in the same quarter 2012.
� For the full fiscal year 2013, the total revenue was
$158.1 million, up 25% from the previous year.
With these increases, the company upped its expectations for
fiscal 2014. Abiomed reported that it expects 2014 revenue to be
in the range of $180 to $185 million, specialized product
Impella's revenue is forecasted to increase by approximately 20%
and the GAAP operating margin rate for the full year is expected
to be in the range of 7% to 8% of total revenue.
on Abiomed show that the company currently has no debt. The
company's revenue has also been on the rise since 2008. Also,
Abiomed's revenue growth is ranked higher that 93% of the 165
companies in the global medical devices industry.
ABMD data by GuruFocus.com
There are currently 5 gurus that hold stake in Abiomed.
With its shares up 4.42%, Abiomed trades at $23.39.
Luminex Corporation (
Luminex has reported three different insider buys coming from
Director Walter Loewenbaum since the beginning of May.
Combined, Loewenbaum bought a total of 117,400 shares at an
average price of $17.13 per share. This cost the director a total
of $2,023,477. Loewenbaum currently holds over 2 million shares
Loewenbaum's buys are the first insider buys reported for the
company since 2009. Since his most recent buy on May 9, the price
of Luminex has increased by 6.8%.
Luminex is also a medical supplies company. Luminex develops,
manufactures and markets biological testing technologies with
applications throughout the clinical and life sciences
The company has seen a successful first quarter. Some of the
company's financial and operating highlights:
� A consolidated first quarter revenue of $53.2
million, a 9% increase from 2012
� Signed a collaboration and license agreement with
) to develop a companion diagnostic that will help screen
patients into Merck's lead investigational candidate drug study
for Alzheimer's disease.
� Non-GAAP net income of $7.9 million, or $0.19 per
� GAAP net loss of $2.5 million or ($0.06) per diluted
share after a $7 million charge associated with finalizing the
termination of their molecular distribution agreements.
The financials on Luminex show that the company's per share
revenue has been on the rise since 2004.
LMNX data by GuruFocus.com
GuruFocus warns that the company's P/E is close to a two-year
high of 120.13. It also notes that its assets are growing faster
than its revenue which might mean that the company is getting
PRIMECAP Management currently holds 2,543,292 shares of Luminex,
and Paul Tudor Jones holds 18,000 shares.
With its shares down 0.05% today, Luminex trades at $18.37.
This past week medical supply company Pro-Dex reported two
insider buys coming from two of the company's directors.
Directors Nicholas John Swenson and Raymond Cabillot each bought
a total of 28,206 shares at $2.00 per share. This cost each of
the men a total of $56,412.
Since their most recent buy, the price of Pro-Dex has increased
The company recently appointed a new COO (Richard Van Kirk) as
well as a new CEO (Harold Hurwitz).
The company is a rather small surgical supply company with
operations in California and Oregon. The company specializes in
rotary drive surgical and dental instruments used primarily in
orthopedic, spine, maxocranial facial and dental markets.
The company is set to release its third fiscal quarter 2013
results this afternoon.
The analysis on Pro-Dex reports that the price of the company is
nearing a 52-week high of $2.24. It also reports that the
company's P/S ratio is close to a 3-year high of 0.5. The
company's revenue has been in decline for the past five years.
PDEX data by GuruFocus.com
There are currently no gurus that hold a stake in Pro-Dex.
Pro-Dex currently trades at $2.04.
Boston Scientific (
On May 6, Boston Scientific director, Mario Ernest, bought 30,000
shares of BSX stock at an average price of $7.76 per share. This
transaction cost the director a total of $232,800.
This buy marks the first insider transaction for Boston
Scientific since Nov. 2012.
Boston Scientific develops, manufactures and markets medical
supplies that are used in a range of interventional medical
specialties. The company's products are offered in seven primary
businesses: Interventional Cardiology, CRM, Endoscopy, Peripheral
Interventions, Urology/Women's Health, Neuromodulation and
Some highlights of the first quarter financial results for Boston
� Sales were at $1.761 billion, down 6% from the first
� EPS of $0.16 per diluted share
� Grew combined revenue in the countries of Brazil,
Russia, India and China 35% year-over-year on a constant currency
� It generated $163 million and used approximately
$100 million to buy back 13 million shares under the company's
existing share repurchase authorizations.
The GuruFocus analysis shows that the company's per share revenue
has been in decline for the past five years and that the gross
margin has been in a long-term decline. The average rate of
decline per year is 1.5%.
BSX data by GuruFocus.com
The analysis also shows that the company's price and P/S ratio
are currently at three-year highs.
There are currently 14 gurus that hold shares of Boston
Scientific. To read an analysis on Leon Cooperman and Michael
Price's holdings in Boston Scientific, click here.
With its shares up 2.37%, Boston Scientific trades at $8.65.
To view the full list of insider buys in the health care
industry, click here.
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