Market Overview

Notable Insider Buys Last Week: Small-Cap Biotechs

Share:
Notable Insider Buys Last Week: Small-Cap Biotechs

Insider buying can be an encouraging signal for potential investors.

Insiders at some small-cap biotechs have made notable share purchases.

At two of them, the shares were sold in recent secondary offerings.

Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. So insider buying can be an encouraging signal for potential investors, particularly with markets near all-time highs and during periods of uncertainty.

The following are a few of significant insider purchases reported last week, all small-cap biotechs. Also note that with earnings season in full swing, buy windows for many insiders are closed.

Aptinyx

A director at Aptinyx Inc (NASDAQ: APTX) purchased over 3.33 million shares of this clinical-stage biopharmaceutical company focused on brain and nervous system disorders. At $3 per share, that totaled just shy of $10 million and far outstripped the prior week's insider purchases in the same common stock offering.

Aptinyx stock saw about a 9% gain in the past week, and shares were last seen trading at $4.60 apiece, above the director's purchase price and a multimonth high.

The stock still is down more than 12% year-over-year. The consensus analyst recommendation is to buy the shares, and on average they see the share price going to $11.

La Jolla Pharmaceutical

A La Jolla Pharmaceutical Company (NASDAQ: LJPC) director stepped up to the buy window last week and picked up more than 1.25 million shares of this San Diego-based biopharma company at between $6.01 and $7 each. An executive also purchased 3,000 shares at about $8.23 each. Altogether, that totaled more than $8.37 million.

Kevin Tang of Tang Capital Management recently disclosed a more than 30% stake in La Jolla. The stock closed most recently at $7.73 a share, after starting the year at $3.93. Analysts currently anticipate the share price will go to $12.50 and recommend buying La Jolla stock.

Osmotica Pharmaceuticals

Osmotica Pharmaceuticals PLC (NASDAQ: OSMT) reported that two directors and three 10% owners each purchased 1.25 million shares in a public offering of ordinary shares. At $5 per share, that cost each of them $6.25 million. Shares surged on the news of the purchases.

The fourth-quarter earnings report is scheduled for Feb. 13. The shares of this New Jersey-based integrated biopharma company were trading at $5.85 each on last look, above the secondary offering purchase price. The stock has traded as high as $8.45 in the past year, and the consensus price target is $8.25.

See also: Best Buy Investigating Allegations Of Improper Relationship Between CEO, Company Exec

Note that there was some notable insider buying at JPMorgan Chase & Co. (NYSE: JPM) and Trinity Industries Inc (NYSE: TRN) last week as well.

At the time of this writing, the author had no position in the mentioned equities.

Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.

Posted-In: Aptinyx JPMorgan La Jolla Pharmaceutical Osmotica Pharmaceuticals trinity industriesNews Insider Trades Best of Benzinga

 

Related Articles (JPM + APTX)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com