BioAmber: 3 Different Insiders Have Purchased Shares This Month

May.15.14 | About: BioAmber (BIOA)

Summary

3 insiders purchased BioAmber stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

All 3 of these insiders increased their holdings by more than 10% each.

BioAmber (NYSE:BIOA) produces and sells bio-succinic acid to customers in various chemical markets in the United States.

Click to enlarge

Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Jean-Francois Huc CEO May 12 3,000 20,345 shares +17.3%
Michael Hartmann EVP May 12 2,500 21,220 shares +13.4%
Andrew Ashworth CFO May 12 3,000 3,000 shares from 0 to 3,000
Click to enlarge

There have been 8,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
May 2014 8,500 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 7,200 0
October 2013 0 0
September 2013 1,700 0
August 2013 18,300 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
Click to enlarge

There have been 35,700 shares purchased and there have been zero shares sold by insiders since May 2013. BioAmber had its IPO in May 2013.

Financials

BioAmber reported the first-quarter financial results on May 8 with the following highlights:

Revenue $351,000
Net loss $19.9 million
Adjusted net loss $8.3 million
Cash $73.0 million
Debt $30.0 million
Click to enlarge

The three insiders purchased their shares after these results.

Outlook

BioAmber expects to have its Sarnia plant completed in early 2015.

Competition

BioAmber's competitors include Koninklijke DSM N.V. (OTCQX:RDSMY) and BASF SE (OTCQX:BASFY). Here is a table comparing these companies.

Company BIOA RDSMY BASFY
Market Cap: 185.22M 12.27B 104.80B
Employees: 54 21,189 112,305
Qtrly Rev Growth (yoy): 0.06 0.00 -0.01
Revenue: 2.69M 12.46B 102.08B
Gross Margin: -0.03 0.28 0.25
EBITDA: -28.96M 1.59B 13.34B
Operating Margin: -11.04 0.07 0.09
Net Income: -43.63M 262.70M 6.75B
EPS: -2.47 0.44 7.34
P/E: N/A 40.38 15.54
PEG (5 yr expected): N/A 2.38 9.00
P/S: 68.56 0.99 1.03
Click to enlarge

BioAmber is still building its Sarnia plant.

Conclusion

There have been three different insiders buying BioAmber, and there have not been any insiders selling BioAmber during the last 30 days. All three of these insiders increased their holdings by more than 10% each.

The three insiders purchased their shares at prices ranging from $10.00 to $10.17. I believe BioAmber could be a good pick below $10.17 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in BIOA 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.

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