Why Opko Health Shares Dropped

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biopharmaceutical company Opko Health dropped as much as 11% after a top executive sold 50,000 shares of Opko stock.

So what: In order to stem the assumed panic that, after a big run, insiders were cashing out, Opko's management noted that only Adam Logal -- its vice president, chief accounting officer, and treasurer -- sold 50,000 shares to "address pressing family circumstances." According to the press release, no other officers or directors have sold or have contemplated selling shares of the company within the last 12 months.


Now what: Sales of Opko's diagnostic and pharmaceutical products are expected to rise by better than 50% in 2013, according to estimates, but, with a valuation over $1.9 billion, I'm having trouble seeing the same optimism as investors. I wouldn't read too much into Opko's directors' buy and sell indications, but would instead wait for Opko's guidance to dictate the proper course of action for the share price. Based on what I'm seeing (i.e., losses expected throughout 2013), I find a hard time supporting further price appreciation from here.

Craving more input? Start by adding Opko Health to your free and personalized watchlist so you can keep up on the latest news with the company.

While you can certainly make huge gains in biotech and diagnostics makers like Opko Health, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Why Opko Health Shares Dropped originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners