Hi.
I've come across this company and would like your opinions on it as a long term investment. Please feel free to rip apart my thesis.
Overview: OraSure Technologies, Inc., is a BioTech company together with its subsidiaries, develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices in the United States, Europe, and internationally. These products covers a huge range including the bacterial microbiome which is an emerging topic being widely adopted, investigated and is rapidly accelerating in research efforts in the life sciences. They are also big on rapid COVID-19 testing kits, Rapid HIV testing kits, rapid EBOLA testing kits and recently a new HCV testing KIT.
Insider trading shows lots of shares being brought by members of the team over the last 3 month. Share ownership (individual 4%, hedge funds 6%, institutions 90% – Blackrock 19%, vanguard 7%, capital management 6% etc). Most recent filings show every major shareholder is buying more of the stock at these prices (managed account +29%, vanguard +2.2%). No meaningful share dilution over the last few years.
No major results on DATAROMA (hedge funds, high net worth individuals buying/selling shares).
No major results on OpenInsider (SEC form 4 – Internal trading).
Financials:
Reporting earning on the 8th august. YDT (-73%), MarketCap: $351m. Shareprice $3.23. Underperformed the US medical equipment industry by -23%. P/E -5. EPS -0.65. Net profit -19.3% YTD. Forecast annual sales growth -12.5%. DCF 1 years $7 (+61%). Balance sheet: $112m cash, $112 physical assets, liabilities $43m, receivables $76m.
History: Founded in 1986, employees: 785 (and increasing). New management team of 1.3 years. new CEO Carrie Manner, very experiences in the life sciences and good track history.
tltr: My overall thesis is that BioTech is going to do well over the next 5 years. OSUR has a very cyclical price action. A lot of the subsidiary company (Diversigen for example), are expanding and becoming more adopted in the life sciences due to being very cost competitive. The company is at a very attractive valuation.
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