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Summary

  • 4 insiders purchased Prothena stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • All 4 of these insiders increased their holdings by more than 10%.

Prothena Corporation (NASDAQ:PRTA) focuses on the discovery, development, and commercialization of novel antibodies for the treatment of various diseases associated with protein misfolding or cell adhesion.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Prothena's insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Tran NguyenCFOMay 92,2002,200 sharesfrom 0 to 2,200
Tara NickersonCBOMay 121,6562,000 shares+481.4%
Dale SchenkCEOMay 128,0008,211 shares+3,791.5%
Gene KinneyCSOMay 92,5002,793 shares+853.2%

There have been 14,356 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Prothena's insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
May 201414,3560
April 201400
March 201400
February 201403,182,253
January 201400
December 201300
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 14,356 shares purchased, and there have been 3,182,253 shares sold by insiders since January 2013. The month of May 2014 has seen all of the insider buying.

Financials

Prothena reported the first-quarter financial results on May 5 with the following highlights:

Revenue$32.2 million
Net income$17.9 million
Cash$195.1 million

The four insiders purchased their shares after these results.

Outlook

Prothena expects a net cash burn of $7 million to $12 million for 2014, ending the year with approximately $167 million in cash.

Pipeline and upcoming milestones

Prothena has three product candidates in the pipeline.

(click to enlarge)

(Source: Investor presentation)

Prothena has the following upcoming milestones.

(click to enlarge)

(Source: Investor presentation)

Competition

Prothena's competitors include GlaxoSmithKline (NYSE:GSK), Celgene (NASDAQ:CELG), and Takeda (OTCPK:TKPYY). Here is a table comparing these companies.

CompanyPRTAGSKCELGTKPYY
Market Cap:456.92M132.72B60.27B35.42B
Employees:3999,4515,100N/A
Qtrly Rev Growth (yoy):187.5-0.130.180.10
Revenue:32.74M43.43B6.76B16.65B
Gross Margin:N/A0.700.82N/A
EBITDA:-12.74M13.91B2.23B3.60B
Operating Margin:-0.410.270.270.10
Net Income:-14.19M8.71B1.34B1.05B
EPS:-0.723.543.140.66
P/E:N/A15.5647.9133.78
PEG (5 yr expected):N/A1.900.79N/A
P/S:12.973.058.692.11

Prothena doesn't have any approved products yet.

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

CompanyInsider buying / sharesInsider selling / shares
GSKN/AN/A
CELG072,457
TKPYYN/AN/A

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

Conclusion

There have been four different insiders buying Prothena, and there have not been any insiders selling Prothena during the last 30 days. All four of these insiders increased their holdings by more than 10%. Prothena has an insider ownership of 44.11%.

The four insiders purchased their shares at prices ranging from $19.54 to $21.00. I believe Prothena could be a good pick below $21 based on the intensive insider buying.

Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.

Source: Prothena: 4 Different Insiders Have Purchased Shares This Month