Aspira Women’s Health and Genesco have both seen their share prices implode. The plunges spurred the insiders to act and buy shares. The purchases are all the more telling because there has been no insider activity in either stock for many quarters, and both have catalysts on the horizon.
Aspira Women’s Health Turning A Corner
Aspira Women’s Health has seen better days. Its shares are down nearly 100% from $140 to $2 over the last 2 years due to continued failure to deliver revenue and earnings. However, a new strategy appears to be gaining momentum, and the insiders are buying.
The company implemented a new marketing and sales strategy that resulted in a record increase in new ordering physicians. The company’s core products are a suite of tests for gynecologic diseases, a market valued at nearly $15 billion.
Key highlights of the Q1 report include volume per rep doubling and total revenue growing by 26%. Revenue was underpinned by a 29% increase in OvaSuite sales, and leverage was gained too. The company’s cash burn also subsided and was 44% less than the prior year. Assuming this momentum continues, the company could reach profitability within the next few years.
Aspira Women’s Health has 2 potential catalysts ahead. The 1st is the expanded use of the OvaWatch as a serial test which would greatly expand the addressable market. The 2nd is the launch of the 1st generation EndoCheck blood test.
The EndoCheck blood test is a non-invasive test for endometriosis and could add significantly to the top and bottom lines.
Regarding the insiders. Insiders hadn’t made a sale or purchase of stock since the middle of 2022, and then in July of this year, 5 insiders made purchases on the same day. Insiders include the CEO, COO, CFO, director, and a major investor. That investor is Jack W. Shuler, who is a well-known pharma investor and philanthropist. Together, insiders own about 5% of the company.
The chart isn’t awesome. The stock is in a clear downtrend and may continue to trend lower. However, the market is also oversold and showing signs of support at the current levels. Those signs include rising volume and diverging stochastic, which suggest overextension.
Genesco Hits Rock Bottom
Shares of hit rock bottom following the fiscal Q1 earnings report and a rebound in play. The plunge was caused by weaker-than-expected earnings and reduced guidance now priced into the market.
The post-release action smacks of capitulation, meaning a meaningful rally could be brewing. Regardless, the insiders viewed the drop as a compelling opportunity and used it to buy shares. The insiders hadn’t made a purchase or sale in over a year until Q2 when 4, including the CEO, CFO, VP, and a director, all made purchases.
The 1st three made their buys on the same day while the director waited until the following week. The salient point is that the stock is at a bottom and, like the business, at a turning point.
Institutions may provide a headwind. The institutions own nearly 90% of the stock and sold heavily following the Q1 release. The activity has slacked off since but remains bearish on balance.
The next catalyst will be Q2 results expected at the end of this month.
The stock shows solid support at a critical level; the Q2 results may spark a retest of support, but it is expected to hold. Coincidentally, the single analyst with a rating on Insidertrades.com screening tools is bullish.
Seaport upped the stock to Buy earlier this year but did not set a price target with the release. However, it is trading in line with Footlocker’s valuation, which the analysts view as undervalued.