Board Director Invests $1.5 Million in Xencor Inc (XNCR) Amid the IPO

On Friday, Xencor Inc (NASDAQ:XNCR)’s Board Director, John Stafford III acquired 275,000 company shares at its initial public offering (IPO). He paid the full IPO price, $5.50 per share, in a transaction worth more than $1.5 million. These shares add up to the ones he got in exchange for his Series A-1 Preferred Stock (every 3.1 shares of Series A-1 Preferred Stock automatically converted into 1 share of common stock).

Xencor

Xencor Inc (NASDAQ:XNCR) is a small-cap clinical-stage biopharmaceutical company that develops engineered monoclonal antibodies for the treatment of autoimmune diseases, asthma, allergic diseases, and cancer, closed its IPO last Friday, Dec 6th. It offered 14,639,500 shares of its common stock at an IPO price of $5.50 per share. After deducting underwriting discounts and commissions, and estimated offering expenses, the company projects net proceeds from the offering to be around $72.4 million.

Since the opening of the IPO, several forms reporting insider trades have been filed with the U.S. Securities and Exchange Commission. However, most of them have been disclosures from Board directors and major shareholders, who received the new, publicly traded, stock of Xencor Inc (NASDAQ:XNCR) in exchange for their Series A-1 Preferred Stock.

Back to Stafford: the director now holds more than 7.8 million shares of common stock, valued at more than $64 million. As the owner of more than 25% of the outstanding shares, Stafford stands as the largest shareholder after the IPO. In fact, he was already the largest stockholder before the company went public, owning 45.2% of the company’s shares, according to Xencor Inc (NASDAQ:XNCR)’s S-1 form. In addition, John Stafford, Jr, owned an extra 10.3%, and James Stafford another 6.2%. They now own 5.9% and 3.4% of the total shares, respectively.

Other strong betters on Xencor Inc (NASDAQ:XNCR) are Atul Saran and R Harold Werner, Board Directors, and MedImmune Ventures, Inc. However, currently, none of the major hedge funds that we track hold stakes in this biopharmaceutical company. Still, this could be explained, not by a lack of bullish sentiment, but by the very little time passed since the company went public. Nonetheless, its negative figures for margins and returns are eye-catching: investors should be aware of the risks involved in investing in a clinical-stage biopharmaceutical company.

One way or another, stock is on the rise now, and could certainly be a good play, at least for short-sellers.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Akamai Technologies, Inc. (AKAM)’s CEO Buys Stock Amid M&A Announcement

Insiders Feeling Good With These Healthcare Stocks

Insiders and Jim Simons Into IT Services

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!