Prothena: 4 Different Insiders Have Purchased Shares This Month

May.13.14 | About: Prothena Corp (PRTA)

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Tran Nguyen CFO May 9 2,200 2,200 shares from 0 to 2,200
Tara Nickerson CBO May 12 1,656 2,000 shares +481.4%
Dale Schenk CEO May 12 8,000 8,211 shares +3,791.5%
Gene Kinney CSO May 9 2,500 2,793 shares +853.2%
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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.

Month Insider buying / shares Insider selling / shares
May 2014 14,356 0
April 2014 0 0
March 2014 0 0
February 2014 0 3,182,253
January 2014 0 0
December 2013 0 0
November 2013 0 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 0 0
February 2013 0 0
January 2013 0 0
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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
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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.

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(Source: Investor presentation)

Prothena has the following upcoming milestones.

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(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.

Company PRTA GSK CELG TKPYY
Market Cap: 456.92M 132.72B 60.27B 35.42B
Employees: 39 99,451 5,100 N/A
Qtrly Rev Growth (yoy): 187.5 -0.13 0.18 0.10
Revenue: 32.74M 43.43B 6.76B 16.65B
Gross Margin: N/A 0.70 0.82 N/A
EBITDA: -12.74M 13.91B 2.23B 3.60B
Operating Margin: -0.41 0.27 0.27 0.10
Net Income: -14.19M 8.71B 1.34B 1.05B
EPS: -0.72 3.54 3.14 0.66
P/E: N/A 15.56 47.91 33.78
PEG (5 yr expected): N/A 1.90 0.79 N/A
P/S: 12.97 3.05 8.69 2.11
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Prothena doesn't have any approved products yet.

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

Company Insider buying / shares Insider selling / shares
GSK N/A N/A
CELG 0 72,457
TKPYY N/A N/A
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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.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PRTA over the next 72 hours. 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.

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