Following the selloff in shares of Avigilon (TSX:AVO) that was sparked by the sudden and curiously-timed departure of CFO Brad Bardua, some analysts felt the company minus a third of its market cap represented an opportunity for investors.
“We believe that the recent sell-off following the departure of the CFO is overdone,” wrote TD analyst Scott Penner in May. “Our view is that the current price is an attractive entry point.”
Many of those closest to Avigilon appear to agree with Penner’s assessment. In the time since the company released its Q1 results on May 7th, several company insiders have purchased shares of the company in the open market.
Independent director Bruce Marginson recently joined director Larry Berg, interim CFO Wan Jung, Executive VP of Engineering Danny Kam and CEO Alex Fernandes with the purchase of 5000 shares at prices ranging from $20.27 to $20.77 on May 28th and May 29th. Other notable buys include Jung’s purchase of 10,000 shares and Fernandes’s 10,000 share pickup on May 15th.
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In an interview with Cantech Letter following the results, Fernandes said that although Avigilon might be a fast paced place to work, there was no trend in the recent departure of executives.
“We have a corporate culture that is driven by an entrepreneurial spirit. Due to the rapid growth of our business, we do have a high-performance culture,” he said, adding: “All organizations of this size deal with turnover and we are no exception. Any departures that we’ve had have been unique to those individuals.”
At press time, shares of Avigilon were up 3.5% to $21.66.