OXBR

Oxbridge Re ($OXBR) CEO Shows Confidence With $52,500 Stock Purchase Following 70% Share Price Collapse

05/19/2025 21:26

Oxbridge Re Holdings ($OXBR), a small reinsurance company, has seen its CEO Sanjay Madhu make a significant stock purchase following a steep decline in the company's share price. According to SEC filings, Madhu acquired 25,000 shares at an average price of $2.10 per share on May 15, representing a total investment of approximately $52,507. This purchase comes after $OXBR's stock has plummeted more than 70% from its peak earlier this year. The company's shares reached as high as $5.50 in mid-February 2025 before entering a sharp decline, bottoming out at around $1.30 in late April. The stock has shown some recovery in May and currently trades at $1.93. Madhu's stock acquisition stands in contrast to the consistent selling pattern exhibited by major shareholder Allan Martin throughout the previous year. Martin sold approximately 57,755 shares through multiple transactions from July through August 2024, with additional sales in October. Notably, Martin's transactions involved indirect ownership through family foundations or joint ownership with his spouse, with Martin disclaiming beneficial ownership of these securities according to SEC filings. Oxbridge Re Holdings, headquartered in the Cayman Islands, specializes in providing specialty property and casualty reinsurance solutions, primarily targeting insurance companies in the Gulf Coast region of the United States. The company has garnered attention for its innovative use of blockchain technology to issue reinsurance contracts, enhancing transparency and efficiency in the reinsurance process. Additionally, the firm offers fractional aircraft ownership and charter services. Financially, the company continues to face challenges. In its recently reported Q4 2024 results, Oxbridge Re posted a net loss of $460,000 or $0.05 per share, though this represents an improvement from the $2.67 million loss ($0.46 per share) reported in the same quarter the previous year. For the trailing twelve months, the company recorded revenue of $1.36 million with a net loss of $1.96 million. Significantly, on May 12, just days before the CEO's stock purchase, the company filed for a mixed shelf offering of up to $100 million with the SEC. This move provides Oxbridge Re with the flexibility to raise additional capital as needed. Currently, the company maintains approximately $4.96 million in cash with a relatively conservative debt-to-equity ratio of 30.75%. It's worth noting that in June of last year, the company announced it would evaluate strategic alternatives, suggesting potential changes to its business direction. Specifically, it mentioned considering a full range of strategic options for both the company and its Web-3 division subsidiary, SurancePlus Holdings Ltd. Industry analysts point out that the reinsurance sector continues to face pressure from increasing natural disasters due to global climate change and inflation impacts. However, the adoption of new technologies like blockchain could present fresh opportunities for the industry. Madhu's stock purchase, coming at a time when shares have significantly depreciated, may signal confidence in the company's stock at current price levels. Insider purchases, particularly by CEOs, are typically viewed as positive indicators of long-term value. However, investors should approach with caution given the company's ongoing profitability challenges and the challenging environment facing the reinsurance industry.

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