The PolyNovo Ltd (ASX: PNV) share price is coming under pressure today as the S&P/ASX 300 Index (ASX: XKO) faces another sea of red.
At the time of writing, the PolyNovo share price has slid 5.7% to last change hands at $1.65 apiece.
Meanwhile, the ASX 300 index has slipped by 1.6% to 6,640 points.
But one PolyNovo director is seeing this weakness as an opportunity to pick up more shares. Let’s take a look.
PolyNovo chair pounces
Through an ASX release, we learned that PolyNovo chair David Williams has been on a share-buying spree today.
He’s indirectly purchased 115,000 PolyNovo shares on-market at an average price of $1.7231, splashing nearly $200,000 in the process.
Today’s purchase takes Williams’ total shareholding to 24.7 million PolyNovo shares, which are worth around $41 million at current prices. He owns roughly 3.7% of the company.
This isn’t the first time Williams has picked up PolyNovo shares this year. He went on a major buying spree in May and June, indirectly acquiring roughly 5.7 million PolyNovo shares on-market. He did so across 18 transactions, scooping up PolyNovo shares at average prices ranging from $0.87 to $1.27.
These moves have since proven to be savvy, with the PolyNovo share price sitting comfortably above these levels today.
Williams is a long-serving member of PolyNovo’s board, having first been appointed in 2014. He is also chair of fellow ASX healthcare share Medical Developments International Ltd (ASX: MVP), in which he owns 10.7 million shares.
Recent trading update
Today’s director buying is hot on the heels of a first-quarter trading update from PolyNovo last week.
The company achieved its first-ever $5 million sales month, raking in $5.4 million in September. Across the first quarter, the company achieved record September quarter sales of $12.5 million, up 73% from $7.2 million in the prior corresponding period (pcp).
PolyNovo noted that growth accelerated in the US, delivering record quarterly sales of $10.4 million, up 71% from the pcp. Meanwhile, rest of world sales grew by 84% to $2.1 million.
PolyNovo share price snapshot
Despite today’s slump, PolyNovo is one of the rare ASX 300 shares sitting in the green this year.
The PolyNovo share price has gained 8% in the year to date. But zooming in to the last six months, PolyNovo shares have shot the lights out with a 57% gain.
The last month also tells a positive tale, with the PolyNovo share price racing 17% higher.
PolyNovo shares fell out of the S&P/ASX 200 Index (ASX: XJO) in the June rebalance earlier this year. The ASX 300 healthcare company currently commands a market capitalisation of around $1.1 billion.
The post Monday sell-off: Another ASX 300 director goes on a bargain share-buying spree appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Cathryn Goh 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 Medical Developments International Limited and POLYNOVO FPO. The Motley Fool Australia has recommended Medical Developments International Limited. 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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