Richard A. Richieri, Chief Operations Officer of Avid Bioservices, Inc. (NASDAQ:CDMO), recently reported the sale of company shares. According to the SEC filing, Richieri sold a total of 2,483 shares on January 10, 2025, at a price of $12.37 per share, amounting to $30,714. The transaction comes as the stock trades near its 52-week high of $12.48, having delivered an impressive 98% return over the past year. According to InvestingPro analysis, the company appears slightly overvalued at current levels.
The transactions included 2,283 shares directly owned by Richieri and an additional 200 shares owned indirectly through his spouse. These sales were executed to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs).
Following these transactions, Richieri directly holds 49,535 shares, while his spouse owns 8,785 shares indirectly.
In other recent news, Avid Bioservices has been at the center of significant developments. The company's second-quarter fiscal year 2025 results showed revenue matching Stephens' projections but slightly missing the consensus. Avid Bioservices also reported a backlog of approximately $220 million, which was below the estimated $235 million. Gross profit margin was reported at just 6.27%, with a negative EBITDA of -$7.69 million in the last twelve months.
The company has agreed to be acquired by GHO Capital Partners (WA:CPAP) and Ampersand Capital Partners in a deal valued at approximately $1.1 billion, as reported by RBC Capital. The all-cash transaction, expected to close in the first quarter of 2025, has led RBC Capital to downgrade Avid Bioservices from Outperform to Sector Perform, albeit with a price target increase to $12.50.
In addition to the acquisition, Avid Bioservices has made substantial changes to its executive compensation framework, including the expansion of its 2018 Omnibus Incentive Plan and the amendment of its 2010 Employee Stock Purchase Plan, earning stockholder endorsement. The company has also reported a 6% revenue increase to $40.2 million in the first quarter of fiscal year 2025, despite a net loss of $5.5 million.
Furthermore, Avid Bioservices anticipates growth in adjusted EBITDA and margins, with a potential 40% to 60% increase in incremental revenue. KeyBanc analysts have maintained a positive outlook on the company, reiterating an Overweight rating. These recent developments demonstrate Avid Bioservices' commitment to growth and shareholder alignment.
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