BTMD

Biote Corp($BTMD) Executives and Major Shareholder Signal Strong Confidence with $2.5 Million in Purchases Amid Stock Decline

04/24/2025 03:07

Biotech firm $BTMD (Biote Corp) has experienced a significant stock price decline in recent months, but the company's top executives and major shareholders are viewing this as a buying opportunity. The substantial insider purchases from mid-March through April are sending notable signals to investors. After reaching a peak of $8.36 in mid-July 2024, $BTMD's stock has steadily declined, bottoming out at a 52-week low of $3.07 on March 13, 2025. This represents a drop of more than 63% from its 52-week high. However, immediately following this sharp decline, key insiders stepped in with significant purchases. Notably, on March 17, 2025, CEO Bret Christensen acquired 37,595 shares at an average price of $3.87, totaling $145,492.65. On the same day, board members joined the buying spree: Director Marc Beer purchased 107,794 shares ($417,162.78), Director Stephen Mark Cone bought 38,104 shares ($147,843.52), and Director Andrew Heyer acquired 75,000 shares ($296,028.75). These transactions occurred at prices ranging from $3.55 to $4.00 per share, representing a collective investment of over $1 million by management in a single trading day. Even more remarkable is the consistent buying by major shareholder Guines LLC. From March 13 to April 21, Guines purchased a total of 1,092,163 shares worth approximately $3.4 million. Particularly noteworthy was their acquisition of 750,000 shares on March 13, the very day of the stock's precipitous drop, followed by steady additional purchases. These transactions were executed through Roystone Management Holdings, managed by Richard Barrera. This concentrated insider buying contrasts with earlier selling by CFO Robert Charles Peterson, who sold 11,376 shares in July 2024 and 32,874 shares in September 2024. Peterson's sales occurred when the stock price was relatively higher. $BTMD is a healthcare company headquartered in Irving, Texas, specializing in bioidentical hormone replacement therapy. The company provides training and certification for physicians and nurse practitioners in hormone optimization practices, while also selling dietary supplements and sterile pellet insertion kits. Looking at its 2024 financial performance, $BTMD reported revenue of $197.2 million, representing 6.4% year-over-year growth. However, net income slightly decreased to $3.16 million from $3.32 million in the previous year. On the profitability front, gross margin improved to 70.5%, and the company maintains a cash position of $39.34 million. $BTMD's recent quarterly results have been mixed. In its Q3 report released in November 2024, the company posted earnings of $0.33 per share, significantly exceeding analyst expectations of $0.09. However, in the Q4 results announced in March 2025, earnings came in at $0.10 per share, down from $0.18 in the same period last year, with revenue also falling short of expectations. Analysts currently maintain a unanimous 'buy' rating on $BTMD, with a median price target of $9.84—approximately 2.8 times the current share price. This positive outlook aligns with the confidence displayed by insiders through their purchases. $BTMD is scheduled to announce its Q1 2025 results on May 7, which will be a crucial indicator of the company's growth trajectory. With a current market capitalization of approximately $185 million, the company projects an average annual revenue growth of 11% over the next three years. Insider trading experts note that the substantial management purchases occurred particularly after the sharp stock decline, suggesting that executives believe the current share price significantly undervalues the company's intrinsic worth. Additionally, the persistent buying by major shareholders indicates strong confidence in the company's long-term prospects. In conclusion, the concentrated insider buying at $BTMD signals strong internal confidence in the company's fundamental value and growth potential despite the stock price decline. Investors should watch carefully how the stock responds to upcoming earnings announcements and market conditions.

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