LDR EVP Sells $3.6M in Stock: 5 Key Financial Notes

Written by Laura Dyrda | May 23, 2014 | Print  |

LDR Executive Vice President Patrick Richard sold 151,000 shares of the company's stock in an open market transaction on Tuesday, according to a Ticker Report article.

LDR is a global spine device company. Here are five things to know about LDR and the sale.

1. The stock was sold at an average price of $24.50; the total transaction topped $3.6 million. Mr. Richard now directly owns 429,668 shares of the company, valued at around $10.5 million.

 

2. LDR announced its proposal for an initial public offering in September 2013 to raise $75 million by offering 5 million shares for $14 to $16 each. In April 2014, the company announced plans to raise an additional $25 million in a secondary public offering. In the second public offering, the company expanded its offering to 1.3 million shares sold at the then-current price of $27.90, which would result in $32.1 million in capital. The new capital would be used to grow the company's sales, marketing and research and development as well as investments in outside technology or acquiring complementary businesses.

 

3. On Thursday, May 22, LDR traded down 0.91 percent during mid-day trading, hitting $22.81 according to the Ticker report analysis, but that was still higher than their one-year low of $17.79. The company's one-year high has been $40.39. The stock's 50-day moving average is $25.36.

 

4. Earlier this year, Piper Jaffray raised their price target on LDR shares from $27 to $33 in a research note. On the same day, JMP Securities analysts raised their target price on LDR shares to $34. The company has an "outperform" rating, according to Ticker Report, and three analysts have rated the stock as "Buy" with an average target price of $33.67.

 

5. During the first quarter of 2014, LDR reported a net loss of $3.5 million and revenue at $31.1 million, up from the first quarter of 2013. The company also reported gross profits of $25.8 million during the first quarter. The company's Mobi-C artificial disc recently received FDA clearance for two-level procedures, making it the only cervical artificial disc to have clearance for both procedures in the United States.

 

In early 2014, the American Medical Association granted a Category 1 CPT code for two-level cervical disc replacement, which will go into effect Jan. 1, 2015. This decision could make elevate reimbursement prospects for two-level cervical disc replacement and more surgeons may incorporate the procedure into their practice in the future.

 

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