In afternoon trade, the medical device company’s shares are up 6% to 92 cents.
Why is the PolyNovo share price racing higher?
The PolyNovo share price has avoided the market selloff today after it emerged that insiders have been buying the company’s shares.
According to two change of director’s interest notices, PolyNovo’s chairman and a non-executive director have both been buying shares.
The first notice reveals that chairman David Williams picked up 500,000 shares through an on-market trade on Thursday. Mr Williams paid an average of $0.8689 per share, which represents a total consideration of $434,450.
The other notice shows that non-executive director Andrew Lumsden bought 100,000 shares through an on-market trade on the same day. Mr Lumsden paid an average of $0.8731 per share, which represents a total consideration of $87,310.
Based on these purchases, these insiders appear to believe the PolyNovo share price is good value after hitting a multi-year low of 84 cents earlier this week.
Analysts at Macquarie are likely to agree with that view. Last month, the broker put an outperform rating and $1.60 price target on the company’s shares.