BCDA

BioCardia Inc($BCDA) President and Board Member Keep Buying Shares Despite 55% Stock Decline, Investing Over $100K in Show of Confidence

04/09/2025 07:58

BioCardia Inc's ($BCDA) stock has experienced a significant decline over the past year, falling more than 55% from around $4.40 in early June 2024 to approximately $2.00 currently. Despite this downward trend, company insiders, particularly President Peter Altman, have been consistently purchasing shares, signaling confidence in the company's future. President Peter Altman has been methodically buying small blocks of shares since June 2024, often making consecutive purchases when the stock price declines. Notably, he acquired 1,350 shares for $2,524 in mid-November 2024 when the price dropped to $1.85, and recently purchased a total of 3,600 shares for approximately $7,735 in early April 2025 as the stock again dipped below $2.00. This pattern suggests management believes the current share price undervalues the company's true worth. An even stronger signal came from Director Simon H. Stertzer, who purchased approximately 39,289 shares at an average price of $2.30 in just three days in early March 2025. This substantial investment of roughly $90,515 represents a significant vote of confidence from a board member committing personal capital to a clinical-stage biotech company. Notably, these shares are held through the Stertzer Family Trust, indicating a long-term investment perspective. BioCardia is a clinical-stage regenerative medicine company developing cell-based therapies for cardiovascular and pulmonary diseases. The company's lead product, CardiAMP, is currently in Phase III clinical trials for the treatment of ischemic heart failure and refractory angina. The company made important progress in 2024, receiving a U.S. patent for its heart device in June and reporting successful completion of a Phase II trial for acute myocardial infarction treatment in collaboration with Cellprothera in July. A particularly significant development occurred in August 2024 when the FDA cleared BioCardia to market its Morph DNA steerable introducer device. This news sent the stock soaring 92.73% in a single day, though subsequent price declines revealed market skepticism about the sustainable impact of this achievement. BioCardia's financial situation, like many early clinical-stage biotech companies, presents challenges. The company reported just $58,000 in trailing twelve-month revenue with a net loss of $7.95 million. It currently holds $2.37 million in cash, providing less than one year of operating runway based on current burn rates. On the positive side, the company is debt-free and boasts a high insider ownership rate of 31.3%. Quarterly financial results have shown some improvement, with the Q3 loss of $0.61 per share reported in November 2024 beating expectations of -$1.19, and the Q4 loss of $0.25 per share announced in March 2025 outperforming the anticipated -$0.62. This suggests effective cost management by the company. In the short term, BioCardia's stock performance will likely depend heavily on key events such as Phase III clinical trial results and additional FDA approvals. The cash runway issue suggests the potential need for additional financing in the near future, which could lead to dilution for current shareholders. From a longer-term perspective, the consistent share purchases by management and directors demonstrate strong insider confidence in the company's technology platform and clinical programs. Director Stertzer's substantial investment, in particular, represents a powerful expression of faith in the company's future growth potential. Analysts currently maintain a median price target of $15.50 for BioCardia, representing an optimistic outlook of approximately 650% upside from current levels. However, as with any clinical-stage biotech company, there remains significant downside risk if major clinical trial results prove disappointing. Taken together, the insider trading patterns suggest that company management and board members strongly believe the current low share price fails to reflect BioCardia's long-term value and potential. President Altman's consistent purchases and Director Stertzer's substantial investment indicate insiders have considerable confidence in the company's clinical programs and technology platform. However, investors should carefully weigh these positive signals against risk factors including limited cash reserves, the need for additional financing, and the possibility of clinical trial setbacks.

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