The Polynovo Ltd (ASX: PNV) share price has jumped ahead in the past month despite losing its place on the ASX 200.
The company’s share price has jumped nearly 13% from $1.185 at market close on 3 June to the current price of $1.335. In contrast, the S&P/ASX 200 Index (ASX: XJO) has lost nearly 9% in the same time frame.
So why has the Polynovo share price had such a good month?
Why has the Polynovo share price risen?
Polynovo is an ASX healthcare share working on medical devices, using patented technology Novosorb.
Polynovo shares have jumped amid insider trading among the company’s management.
The company’s chair David Williams bought $284,142 worth of shares on 6 June and 7 June alone. In total, he purchased 250,000 shares in these two days.
Williams has purchased more than $5 million worth of shares since the start of May, as my Foolish colleague Aaron reported.
Insider buying can be a sign that management is optimistic about the future direction of a company.
Polynovo reported record revenue of $12.6 million in the March quarter, up 59% compared to the same time in the previous year. The company’s ANZ sales picked up substantially in the quarter, up 81.9% compared to the same time last year.
In recent news, Polynovo has completed settlement on the sale of its headquarters in Port Melbourne.
The company’s headquarters sold for $6.35 million.
In recent times, Polynovo shares have made the list of the 10 most shorted ASX shares. However, as my Foolish colleague James reported, short interest in the company has eased to 7.9%.
Polynovo share price snapshot
The Polynovo share price has descended 50% in the past 12 months, while it is down 12% in the year to date.
In comparison, the benchmark ASX 200 has lost nearly 10% over the past year.
Polynovo has a market capitalisation of nearly $884 million based on todayâs share price.
The post Up 13% in a month, Polynovo share price bounces back after being dumped from ASX 200 appeared first on The Motley Fool Australia.
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More reading
- These are the 10 most shorted ASX shares
- These are the 10 most shorted ASX shares
- How have Polynovo shares been performing since leaving the ASX 200?
- These are the 10 most shorted ASX shares
- 5 things to watch on the ASX 200 on Monday
Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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