Opko Health, CEO Phillip Frost: CEO and Chairman of Opko Health Inc. (NYSE:OPK) Phillip Frost purchased 19,000 shares of common stock earlier this week, in a series of transactions. Stock prices rose approximately 1.7% over the course of the day (Tuesday), with Frost making 15 different purchases at prices ranging from $9.46 to $9.63 per share.
The securities are held indirectly through Frost Gamma Investments Trust, of which Phillip Frost is the trustee. Total holdings now amount to 136,772,259 shares, or roughly $1.27 billion. Additionally, the Frost Group, of which Frost Gamma Investments Trust is a principal member, holds 15,490,546 shares of Opko Health directly. Hedge funds of the likes of Millennium Management, Highbridge Capital Management and Citadel Investment Group also hold large positions in the company.
Frost has been purchasing Opko stock continuously over the past few months, with large acquisitions being filled almost every week. With a reputation for investing heavily in firms he leads, and making a profit from their future sale, the acquisition of shares by Frost is motivating investors to put their money in Opko. Shareholders seem to trust this CEO, who has invested approximately 40% of his personal fortune in the pharmaceutical development and diagnostics companies.
The regular purchase of company stock began in 2007, when Frost became CEO of Opko Health. Share prices have been rising ever since, reaching a 52-week high of $10.31 on Oct. 7 2013. Opko is currently trading at 37 times its trailing sales, which means the stock entails a huge price premium relative to the industry average.
Disclosure: Pablo Erbar holds no position in any stocks mentioned