The company’s share price has jumped nearly 13% from $1.185 at market close on 3 June to the current price of $1.335. In contrast, the S&P/ASX 200 Index (ASX: XJO) has lost nearly 9% in the same time frame.
So why has the Polynovo share price had such a good month?
Why has the Polynovo share price risen?
Polynovo is an ASX healthcare share working on medical devices, using patented technology Novosorb.
Polynovo shares have jumped amid insider trading among the company’s management.
The company’s chair David Williams bought $284,142 worth of shares on 6 June and 7 June alone. In total, he purchased 250,000 shares in these two days.
Williams has purchased more than $5 million worth of shares since the start of May, as my Foolish colleague Aaron reported.
Insider buying can be a sign that management is optimistic about the future direction of a company.
Polynovo reported record revenue of $12.6 million in the March quarter, up 59% compared to the same time in the previous year. The company’s ANZ sales picked up substantially in the quarter, up 81.9% compared to the same time last year.
In recent news, Polynovo has completed settlement on the sale of its headquarters in Port Melbourne.
The company’s headquarters sold for $6.35 million.
Polynovo share price snapshot
The Polynovo share price has descended 50% in the past 12 months, while it is down 12% in the year to date.
In comparison, the benchmark ASX 200 has lost nearly 10% over the past year.
Polynovo has a market capitalisation of nearly $884 million based on today’s share price.