BCDA

BioCardia ($BCDA) Insiders Keep Buying Despite 52% Stock Decline: Director Stertzer's $90K Purchase Follows CEO Altman's Consistent Accumulation

04/04/2025 21:07

BioCardia Inc ($BCDA) has seen its insiders steadily buying shares despite the stock's significant decline over the past year. While the share price has fallen approximately 52% from $4.42 in June 2024 to around $2.10 in early April 2025, key executives and board members have been consistently increasing their holdings. Peter Altman, President of BioCardia, has demonstrated a particularly consistent buying pattern since June 2024. Between June 10 and July 1, 2024, Altman purchased a total of 2,500 shares at an average price of $3.29 per share. He continued this pattern in November and December, acquiring an additional 1,350 and 1,250 shares respectively at declining prices. In 2025, his buying has persisted with 739 shares in January, 600 shares in February, 500 shares in March, and most recently, 2,300 shares in early April 2025. Even more notable is the significant buying activity from Director Simon H. Stertzer. In just three days from March 3 to March 5, 2025, Stertzer purchased a total of 39,289 shares for approximately $90,514 through the Stertzer Family Trust. This substantial investment far exceeds the purchase amounts made by Altman during the same period and signals strong insider confidence in the company's future. There was one instance of insider selling when Edward M. Gillis, SVP, sold 3,257 shares for $6,514 on December 20, 2024. However, the company noted this transaction was conducted for tax planning purposes and appears to be an exception to the otherwise consistent buying pattern among insiders. BioCardia is a clinical-stage biotechnology company focused on developing cellular therapies for cardiovascular and pulmonary diseases. The company's lead product, CardiAMP, is currently in Phase III trials for the treatment of ischemic heart failure. On July 25, 2024, the company announced the commencement of patient enrollment in this pivotal Phase 3 trial, marking a significant milestone in the product's development journey. In a notable regulatory achievement, BioCardia received FDA clearance for its Morph DNA steerable introducer device on August 28, 2024, which sent shares soaring 92.73% in a single day. This device is designed for introducing medical instruments into the peripheral and coronary vasculature. Additionally, in early July 2024, the company announced a successful Phase II trial of ProtheracytesTM for acute myocardial infarction in collaboration with CELLPROTHERA, with plans to proceed to Phase III trials. Despite these positive developments in product pipeline, the company's financial situation presents challenges. Revenue for 2024 was reported at just $58,000, a significant decrease from $477,000 in 2023. While net loss improved to $7.9 million from $11.6 million the previous year, it remains substantial. As of December 31, 2024, BioCardia had cash and cash equivalents of $2.37 million, which, at current burn rates, provides less than one year of operational runway. With a market capitalization of approximately $13.1 million, BioCardia is firmly in the small-cap category. The single analyst covering the stock has set a 12-month price target of $15.50, suggesting considerable upside potential from current levels. However, in its November 2024 earnings report, the company reported zero revenue against expectations of $200,000 for the quarter, highlighting the financial uncertainties facing the business. While the persistent insider buying suggests strong internal confidence in the company's long-term prospects, BioCardia will likely need additional financing given its limited cash resources and the high costs associated with clinical development. The success of the company's clinical programs, particularly the Phase III CardiAMP trial, will be critical to realizing its potential value. In conclusion, the consistent share purchases by executives and directors despite the declining stock price indicate that insiders maintain a positive outlook on the company's future. Peter Altman's regular smaller purchases and Simon Stertzer's recent large acquisition stand out as particularly strong signals. However, investors should weigh these positive insider actions against risk factors including the limited cash position and uncertainties inherent in clinical trials.

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