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Biodesix chairman John Patience acquires $103,710 in stock

Published 06/11/2024, 21:20
BDSX
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John Patience, the Chairman of Biodesix Inc. (NASDAQ:BDSX), recently purchased 75,000 shares of the company's common stock, totaling approximately $103,710. The shares were acquired at a weighted average price of $1.3828 per share, with individual transaction prices ranging from $1.3461 to $1.4186. Following this transaction, Patience holds a significant stake in the company, with a total of 2,153,298 shares owned indirectly through Patience Enterprises LP. Additionally, he maintains other holdings through the John Patience Living Trust and by his spouse, bringing his total ownership to several million shares.

In other recent news, Biodesix reported strong growth in its third quarter, with a 35% year-over-year increase in revenue reaching $18.2 million. The lung diagnostic testing revenue climbed 40% to $17.2 million. Despite operational challenges, the company improved its net loss by 6% to $10.3 million, maintaining a robust gross margin of 78.4%.

Biodesix reaffirmed its full-year revenue guidance of $70 million to $72 million, targeting adjusted EBITDA breakeven in the second half of 2025. The company also announced a new $50 million ATM program and ended the quarter with $31.4 million in cash.

In terms of recent developments, Biodesix introduced new coverage for Nodify tests and presented significant data at the CHEST conference. However, the company also faced increased operating expenses of $22.6 million due to increased sales and marketing efforts. Despite these challenges, the company remains confident in its growth trajectory.

InvestingPro Insights

John Patience's recent purchase of Biodesix Inc. (NASDAQ:BDSX) shares comes at a time when the company's stock has faced significant challenges. According to InvestingPro data, BDSX has experienced a 19.28% decline in the past week and a 20.71% drop over the last month. This context adds weight to the chairman's decision to increase his stake, potentially signaling confidence in the company's long-term prospects despite recent market headwinds.

While Biodesix has shown impressive revenue growth of 48.92% over the last twelve months, with revenues reaching $65.56 million, the company is not currently profitable. An InvestingPro Tip highlights that Biodesix is "quickly burning through cash," which aligns with the reported operating income of -$34.56 million for the same period.

Interestingly, despite these financial challenges, the stock is trading at a high Price / Book multiple of 6.87, suggesting that investors may be pricing in future growth potential. This valuation metric, combined with the chairman's significant purchase, could indicate that insiders see value not yet fully recognized by the market.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 6 more InvestingPro Tips available for BDSX, which could provide valuable context for understanding the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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