Good Afternoon!
Insider trades can reveal valuable insights into where executives and insiders see potential. By analysing recent activity, I've uncovered a few standout opportunities that could offer promising returns.
After sifting through 291 insider trades, I’ve calculated which ones show the most promise, and here’s what I found:
- $SMRT: Up 30% in under 2 weeks after insider activity
- $CATX: Director with 112% 3-month returns adds to position
- and more…
I’ll keep digging into the data to bring you the latest and most actionable insider moves every day.
Have a fantastic day!
Jack
P.S. Click here for the Google Sheet with all of the data for the last 30 days.
💰 Previous Winner
On Tuesday, November 19th, we highlighted a notable insider purchase at SmartRent Inc. ($SMRT), where a director invested approximately $150,000 in company shares. The director's historical 3-month return averages 13%, but this investment has already surpassed expectations, as the stock has surged 32% in under two weeks.
The sharp increase in $SMRT's price appears to be influenced by strong Q3 2024 results, announced earlier in November. The company reported record SaaS Annual Recurring Revenue (ARR) of $53 million, showcasing robust growth in its subscription services. This positive momentum, combined with insider confidence and increased market attention, likely contributed to the stock's rapid rise.
It opened at $1.48 and is up to $1.96 (+32%).
New 3-Point Purchases
3-point purchases are the highest-rated insider trades. Remember, returns and win rates are calculated using the previous purchase trades by the insider.
10% Owner Purchase at Neurogene Inc. ($NGNE)
In a recent high-value transaction, a 10% Owner at Neurogene Inc. ($NGNE) purchased 48,770 shares at $25.83 per share, totaling approximately $1.26 million. This buy increased their vested holdings by 2.9%, marking their fifth-largest purchase out of five historical transactions. Notably, the current stock price of $25.80 reflects a negligible 0.1% dip from the insider's entry point, suggesting market stabilization post-purchase.
Why This Purchase Stands Out
This insider’s median purchase size is $7.50 million, indicating that this acquisition is smaller than their typical transactions. However, its strategic timing aligns with a phase of potential consolidation in $NGNE’s price action. The insider's historical return profile showcases strong performance in similar scenarios, making this purchase a potential indicator of confidence in Neurogene’s upcoming trajectory.
Technical Analysis and Price Context
The current price of $25.80 places the stock near critical support levels identified at $25.70, which have historically acted as a floor during periods of low volatility. The stock recently broke out from a short-term resistance level around $25.50, suggesting a bullish continuation pattern. Additionally, the Relative Strength Index (RSI) hovers near 52, indicating neutral momentum with room for upward movement.
Volume trends reveal slightly elevated trading activity following the insider purchase, hinting at increased market interest. If $NGNE breaks above the $26.10 resistance in the coming sessions, it could trigger a significant upside move, potentially validating this insider’s optimistic outlook.
From a broader technical perspective, Neurogene's 50-day moving average of $25.65 and 200-day moving average of $24.95 suggest a steady upward trend. These alignments provide additional support for bullish sentiment.
Historical Insider Performance at $NGNE
An analysis of this insider’s trading history yields impressive return statistics:
- 1-Month Returns: Weighted average of 26%, median of 13%, and a 50% win rate (2 out of 4 trades). These short-term metrics highlight potential for near-term gains.
- 3-Month Returns: Weighted average of 55%, median of 36%, and a 50% win rate. This track record underscores the insider's ability to identify medium-term value opportunities.
While the win rate is evenly split, the weighted averages suggest that successful trades often yield significant returns, with the potential for sharp price increases within the first quarter post-transaction.
Broader Market and Industry Trends
Neurogene operates in the rapidly evolving biopharma sector, specializing in gene therapy for rare neurological diseases. Recent industry developments, such as advancements in FDA approval pathways and heightened investor interest in gene therapy, provide a favorable macroeconomic backdrop. Furthermore, the company’s robust pipeline of therapies targeting high unmet medical needs positions it well for growth, with potential catalysts that could drive shareholder value in the near term.
In the past, insider purchases in the biopharma sector during periods of market consolidation have been strong indicators of upcoming positive developments, such as trial progress or strategic partnerships. While no specific announcements have been made, this insider purchase suggests confidence in Neurogene’s upcoming milestones.
Summary
This $1.26 million purchase at $NGNE stands out for its alignment with the insider’s historical patterns of successful investments. Technical indicators support a bullish case, with the stock trading near key support levels and showing potential for a breakout. Combined with strong historical returns and a favorable industry outlook, this insider transaction highlights Neurogene Inc. as a compelling opportunity for investors seeking exposure to the biopharma space. (link)
Director Purchase at Perspective Therapeutics, Inc. ($CATX)
A Director at Perspective Therapeutics, Inc. ($CATX) recently acquired 6,266 shares at $3.64 per share, totaling $22,813.50. This transaction increased their vested holdings by 1.5% and represents the sixth-largest purchase out of eight historical transactions. Interestingly, this purchase comes as $CATX trades at $4.12, reflecting a notable 13.2% gain from the insider's entry point. Additionally, another insider also purchased shares during this period, reinforcing bullish sentiment around the stock.
Why This Purchase Stands Out
The size of this purchase, while below the insider’s median of $32,746, is significant when coupled with the simultaneous insider activity. Multiple insider purchases often indicate heightened confidence in the company's near-term prospects, suggesting the potential for strategic developments or operational improvements.
This transaction’s timing is particularly noteworthy, as it aligns with $CATX’s recent upward momentum, which has been bolstered by a combination of positive market sentiment and promising developments within the company's niche.
Technical Analysis and Price Context
The stock’s current price of $4.12 represents a 13.2% gain from the insider’s purchase price, highlighting strong short-term performance. Recent trading patterns show $CATX breaking through its 50-day moving average of $3.80, signaling bullish momentum. The stock’s Relative Strength Index (RSI) of 68 suggests it is nearing overbought territory, but not excessively so, leaving room for additional upside.
Volume analysis reveals an uptick in trading activity following the insider transactions, suggesting broader market interest. Additionally, the stock’s proximity to its 52-week high of $4.50 could trigger a breakout if buying pressure persists.
Historical Insider Performance at $CATX
An analysis of this insider’s historical trades demonstrates a consistent ability to identify profitable opportunities:
- 1-Month Returns: Weighted average of 7%, median of 2%, and a 71% win rate (5 out of 7 trades), reflecting reliable short-term gains.
- 3-Month Returns: Weighted average of 83%, median of 112%, and a perfect 100% win rate (7 out of 7 trades), emphasizing exceptional medium-term performance.
These figures underscore the insider’s track record of capitalizing on undervalued opportunities, particularly over a 3-month horizon.
Broader Market and Industry Trends
Perspective Therapeutics operates in the biotechnology sector, specializing in cutting-edge cancer therapy solutions. The sector has seen heightened investor interest due to advancements in personalized medicine and oncology treatments. $CATX’s recent insider activity suggests confidence in its ability to capitalize on these trends, possibly driven by upcoming clinical milestones or strategic partnerships.
Historically, biotech stocks with concentrated insider buying have exhibited strong price appreciation ahead of significant catalysts, such as FDA approvals or key clinical trial updates. The combined insider purchases at $CATX align with this pattern, making the stock a compelling opportunity in the near term.
Summary
This $22,813 insider purchase at $CATX is particularly intriguing given the concurrent insider activity and the stock’s upward trajectory. With a proven track record of profitability, this insider’s trades are a strong signal of confidence. Combined with bullish technical indicators, favorable industry dynamics, and the potential for significant catalysts, $CATX emerges as a stock to watch for investors seeking high-growth opportunities in the biotech space. (link)
All New Top Purchases
The top purchases made by insiders yesterday. Remember, returns and win rates are calculated using the previous purchase trades by the insider.
Repeat Top Insider Purchases at GRNT, CATX, and BDCO, and the first Top Purchases at the other companies.
- 13% 1m / 36% 3m avg returns on 4 previous purchases for the 10% owner at NGNE - (link)
- 5% 1m / 4% 3m avg returns on 8 previous purchases for the President and CEO at GRNT - (link)
- 0% 1m / 11% 3m avg returns on 4 previous purchases for the Chairman & CEO at TFC - (link)
- 18% 1m / 113% 3m avg returns on 7 previous purchases for the director at CATX - (link)
- 2% 1m / 112% 3m avg returns on 8 previous purchases for the Chief Financial Officer at CATX - (link)
- 2% 1m / 24% 3m avg returns on 17 previous purchases for the CEO & President at BDCO - (link)
Click here to access the spreadsheet (it has many more trades, links to all of the trades, and return calculations for each trade)
Top Purchases by Company
The companies with the most top insider purchases in the last 30 days.
After today’s Top Insider Purchases, GRNT moves up to 3rd, CATX moves up to 6th, and BDCO enters this list for the first time.
Click here to access the spreadsheet (it has many more rows and more return calculations for each row).