HOLX

Hologic ($HOLX) Director Makes $300K Contrarian Bet As Stock Plunges 30% Amid Executive Selling

05/09/2025 20:54

In a notable shift from recent insider selling patterns, Hologic Inc ($HOLX) director Martin Madaus has made a significant stock purchase as the company's shares hover near four-year lows. According to SEC filings, Madaus acquired 5,445 shares at an average price of $55.24 on May 7, 2025, representing a total investment of approximately $300,760. This purchase comes amid a steep decline in Hologic's stock price over the past six months. Shares of the women's health-focused medical technology company have fallen from around $80 in late 2024 to approximately $55 currently, representing a decline of over 30%. The downward trajectory accelerated after February 2025, with the stock recently touching as low as $53 in early May. Madaus's purchase stands in contrast to the selling activity by several company executives in the latter half of 2024. Chairman Stephen P. Macmillan sold 44,039 shares for approximately $3.59 million in August 2024, while CFO Karleen Marie Oberton divested 52,679 shares for about $4.24 million during the same month. These executive sales preceded the stock's eventual decline. Hologic's recent performance and downward revisions to guidance have been primary catalysts for the share price decline. On May 2, 2025, the company lowered its fiscal 2025 profit forecast to $4.15-$4.25 per share, citing tariff uncertainties amid U.S.-China trade tensions. Following this announcement, shares fell 7.6% to a four-year low. In February, the company had already reduced its fiscal 2025 revenue forecast to $4.05-$4.10 billion due to weak demand for breast health products. This followed a November 2024 announcement of lower-than-expected annual sales projections attributed to a shipping halt of bone density scanning machines. These consecutive negative developments have contributed to the stock's continued downward pressure. Madaus's purchase may signal his belief that the stock is undervalued at current levels. As a veteran of the medical device industry who previously served as CEO of Millipore Corporation and Cubist Pharmaceuticals, his investment decisions often carry weight within the industry. According to the filing, the shares are held in a revocable trust for which Madaus serves as both settlor and trustee, suggesting a long-term investment perspective. Hologic, with a market capitalization of approximately $13.3 billion, is a leading player in women's health diagnostics and medical technology. The company's product portfolio includes breast cancer screening equipment, cervical cancer testing products, and bone density measurement systems. In its most recent quarterly report released on May 2, Hologic posted adjusted earnings of $1.03 per share, slightly exceeding analyst expectations of $1.02. Revenue declined 1.2% year-over-year to $1.01 billion but still marginally surpassed forecasts of $1.00 billion. The company currently faces headwinds from macroeconomic impacts on demand in China, potential higher component costs due to tariffs, and limited growth drivers. Additionally, ongoing saline shortages affecting medical procedures have impacted some of the company's product usage. While short-term pressures from tariff uncertainties and cost inflation may persist, the long-term demand outlook for women's health-focused medical devices remains positive. Aging populations and increased focus on preventive healthcare continue to serve as tailwinds for diagnostic equipment manufacturers like Hologic. Investors should monitor upcoming earnings releases, developments in U.S.-China trade negotiations, and any additional insider trading patterns. If Madaus's purchase is followed by other insider buying, it could signal management's confidence in the company's long-term value proposition despite current challenges.

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