Cryoport Inc: Institutions & Insiders Love This Life Sciences Services Stock

Cryoport Stock’s Price Weakness Means Opportunity

The COVID-19 pandemic brought attention to the life sciences space as pharmaceutical companies searched for a vaccine. A segment of the biotech industry that I like is the transportation of biologic and cell-based products and therapies in safe and secure ways. Think about how critical transporting biomaterials is.

To play the life sciences transportation space, take a look at Cryoport Inc (NASDAQ:CYRX), a provider of products and services for companies in the biopharma, reproductive medicine, and animal health sectors.

CYRX stock traded as low as $20.21 in May 2020, prior to mounting an impressive rally to $84.97 in January 2021.

Cryoport stock failed to hold and is down 39% from its high. At its current price, I view CYRX stock as an aggressive opportunity.

Chart courtesy of StockCharts.com

Strong Revenue Growth Offers Pathway to Profits

Cryoport Inc’s five-year revenue picture shows double- to triple-digit growth in five consecutive years to a record $78.7 million in 2020. The company generated a compound annual growth rate (CAGR) of 73.4% during this time frame.

(Source: “Cryoport Inc,” MarketWatch, last accessed May 25, 2021.)

The company’s outlook is bullish, with analysts estimating that Cryoport will drive its revenues up by 168.1% to $210.9 million this year and by a more normalized 19.0% to $250.9 million in 2022. (Source: “Cryoport, Inc. (CYRX),” Yahoo! Finance, last accessed May 25, 2021.)

While the revenue side looks great, the company needs to contain its spending and deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) income.

(Source: MarketWatch, op. cit.)

Cryoport also needs to provide a pathway to generally accepted accounting principles (GAAP) earnings-per-share (EPS) profits.

(Source: MarketWatch, op. cit.)

Cryoport Inc is expected to narrow its GAAP loss to $0.49 per share this year and follow that with a GAAP loss of $0.21 per share in 2022. (Source: Yahoo! Finance, op. cit.)

Meanwhile, the company’s attainment of positive free cash flow is likely still a few years away, but much of that will depend on Cryoport controlling its costs.

(Source: MarketWatch, op. cit.)

A plus for the company is its strong balance sheet, which will allow time for the company to work on increasing its revenues.

Cryoport Inc has extremely strong working capital, a debt of $131.7 million, and healthy cash of $353.2 million. (Source: Yahoo! Finance, op. cit.)

Analyst Take

Institutions love Cryoport stock. The number of institutional investors has been rising, with 297 institutions holding a 94.5% stake. (Source: Yahoo! Finance, op. cit.)

We’ve also been seeing major buying from insiders. Over the last six months, insiders purchased a net 1.5 million shares of CYRX stock. (Source: Yahoo! Finance, op. cit.)

I suggest following the lead of the institutions and insiders and look at Cryoport Inc.