In a recent SEC filing, Avid Bioservices, Inc. (NASDAQ:CDMO) Chief Financial Officer Daniel R. Hart reported selling shares valued at $278,773. The transactions took place on December 26, 2024, involving the sale of 22,813 shares at a price of $12.22 per share. The sale comes as the company's stock trades near its 52-week high of $12.48, having surged over 71% in the past six months. According to InvestingPro data, the company currently maintains a market capitalization of approximately $784 million.
The sales were conducted to satisfy tax withholding obligations related to the vesting of restricted and performance stock units. These transactions were not discretionary trades by Hart, as indicated in the filing. Following these sales, Hart holds 110,980 shares of Avid Bioservices. The company currently trades at a price-to-book ratio of 17.5x, reflecting its premium valuation. For deeper insights into Avid Bioservices' valuation metrics and additional financial analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
The filing also detailed acquisitions of common stock on December 25, 2024, through the vesting of restricted and performance stock units. These acquisitions, however, did not involve any cash transactions.
In other recent news, Avid Bioservices has been the center of significant developments. The company's second-quarter fiscal year 2025 results revealed revenue matching Stephens' projections, albeit slightly missing consensus. Avid Bioservices also reported a backlog of approximately $220 million, falling short of the estimated $235 million. On the heels of these results, the company announced its acquisition by GHO Capital Partners (WA:CPAP) and Ampersand Capital Partners for $12.50 per share, leading to a halt in its fiscal year 2025 guidance.
In response to the acquisition, RBC Capital downgraded Avid Bioservices from Outperform to Sector Perform, albeit with a price target increase to $12.50. KeyBanc analysts, on the other hand, maintained an Overweight rating on the company.
In a move to align the interests of its executives with those of its shareholders, Avid Bioservices has made significant 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.
Despite a net loss of $5.5 million in the first quarter of fiscal year 2025, the company reported a 6% revenue increase to $40.2 million and anticipates growth in adjusted EBITDA and margins, with a potential 40% to 60% increase in incremental revenue. These recent developments demonstrate Avid Bioservices' commitment to growth and shareholder alignment.
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