Insiders Are Buying Navidea

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 |  About: Navidea Biopharmaceuticals (NAVB), Includes: GE, LLY
by: Markus Aarnio

In this article, I will feature one healthcare company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

Navidea Biopharmaceuticals (NYSEMKT:NAVB), a biopharmaceutical company, engages in the development and commercialization of precision diagnostics and radiopharmaceutical agents.

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Insider buying during the last 30 days

Here is a table of Navidea's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Brendan Ford Director Nov 8 20,000 139,250 shares +16.8%
Frederick Cope SVP Nov 8 3,500 99,451 shares +3.6%
Gordon Troup Director Nov 8 20,000 146,250 shares +15.8%
Mark Pykett CEO Nov 8 10,900 406,625 shares +2.8%
Brent Larson CFO Nov 8 5,000 380,521 shares +1.3%
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There have been 59,400 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Navidea's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
November 2013 59,400 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 36,350 0
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 95,750 shares purchased and there have been zero shares sold by insiders this year. The month of November has seen the most insider buying.

Financials

Navidea reported the third-quarter financial results on November 6 with the following highlights:

Revenue $400,000
Net loss $11.3 million
Cash $44.6 million
Debt $27.8 million
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Outlook

During the fourth quarter of 2013, Navidea expects additional value enhancing events, including submission of the Lymphoseek sNDA, EMA feedback on its Marketing Authorization Application in Europe, initiation of the NAV5001 Phase 3 trial in Parkinson's disease and additional disclosures regarding the advance of the company's Manocept platform.

(Source: Navidea)

Competition

Navidea's competitors include Eli Lilly (NYSE:LLY), and GE Healthcare (NYSE:GE). GE Healthcare's DaTscan competes with Navidea's NAV5001. Eli Lilly's florbetapir competes with Navidea's NAV4694.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
LLY 0 122,646
GE 10,000 49,300
Click to enlarge

Only Navidea has seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Navidea and there have not been any insiders selling Navidea during the last 30 days. Two of these five insiders increased their holdings by more than 10%. Navidea has an insider ownership of 3.72%.

There are five analyst buy ratings, one neutral rating, and one sell rating with an average price target of $5.25. I believe the next major catalyst for the stock will be the possible positive CHMP opinion for Lymphoseek later this year. I have a long position in the stock currently.

Disclosure: I am long NAVB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.