Polynovo share price rockets higher on insider buying news

The Polynovo Ltd (ASX:PNV) share price is rocketing higher on Friday following news that its chairman has loaded up on shares…

The A2 Milk Company Ltd (ASX: A2M) share price may be under pressure today following heavy insider selling, but not all executives have been selling shares this week.

The Polynovo Ltd (ASX: PNV) share price is storming higher on Friday after revealing a significant purchase of shares from an insider.

At the time of writing the medical device company's shares are up an impressive 11% to $2.25.

What did PolyNovo announce?

This morning the medical device company released a change of director's interests notice which revealed that its chairman has taken advantage of recent share price weakness to add to his holding.

According to the notice, David Williams bought 500,000 shares through an on market trade on 27 August for an average of ~$2.04 per share. This equates to a total consideration of approximately $1,020,000.

Following the purchase, Mr Williams owns a total of 18,500,000 PolyNovo shares.

FY 2020 performance.

Judging by this purchase, it appears as though the chairman is confident the company will build on its performance in FY 2020.

For the 12 months ended 30 June 2020, the dermal regeneration solutions-focused medical device company delivered sales revenue growth of 104% to $19.1 million.

Management advised that this was driven by strong growth across all markets, but particularly in the United States. Thanks to the increasing popularity of its NovoSorb BTM product, the US business delivered a record quarterly sales result in the March quarter. It then followed this up with a 36% increase in sales during the June quarter.

Pleasingly, the company advised that it has been building a solid revenue base in trauma, reconstructive surgery, hand surgery, necrotising fasciitis, and general surgery. Furthermore, its Burn sales are also strong, with significant account penetration in accredited burn centres in all regions.

This appears to have positioned the company perfectly for more of the same in the year ahead.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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