Big Biotech Trades Dominate Recent Insider Buying: Seattle Genetics, Minerva Neurosciences, OvaScience and More

With the end of the quarter right around the corner, and earnings seasons ready to take off in about 10 days, many fund managers are situating their books for what has been a rocky first three months of 2016. With the quarter winding down, so to are the windows for insiders to make transactions before earnings are reported. We saw a definite volume drop this week, which amounted to some of the lowest totals printed all year.

We cover insider buying every week at 24/7 Wall St., and we like to remind readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains a positive indicator.

Here are some of the companies that reported notable insider buying this past week.

Seattle Genetics Inc. (NASDAQ: SGEN) had one of the biggest biopharmaceutical funds buying even more shares of the stock this past week. The Baker Brothers purchased a total of 124,065 shares at prices that were not listed. The total for that buy was $4 million. The fund may have been topping off the tanks as it has bought a gigantic amount of stock in the company over the past month. Seattle Genetics is a biotechnology company that develops and commercializes antibody-based therapies for the treatment of cancer. The stock closed most recently at $34.68.

Minerva Neurosciences Inc. (NASDAQ: NERV) saw a director at the company put in a sizable trade to buy. That director purchased a total of 181,488 shares, all at $6 per share. The total for the buy came in right at $1 million. Minerva Neurosciences is a clinical-stage biopharmaceutical company that focuses on the development and commercialization of a portfolio of product candidates for the treatment of central nervous system diseases. The share price ended last week at $6.05.
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OvaScience Inc. (NASDAQ: OVAS) had the woman at the top buying shares last week. CEO Michelle Dipp acquired a total of 59,700 shares at between $7.79 and $8.72 apiece. The total for the buy was posted at $500,000. Later in the week, Dr. Dipp bought an additional 59,800 shares at $10.35 to $10.53 per share. That buy came in at $600,000. OvaScience is a fertility company that discovers, develops and commercializes new fertility treatment options for women worldwide. The stock closed most recently at $9.06, so the timing looks good.

Flex Pharma Inc. (NASDAQ: FLKS) also had its CEO purchasing stock this past week. Dr. Christoph Westfall scooped up a total of 48,058 shares at $11.74 per share. That cost him $600,000. This biotechnology company develops and commercializes products for the treatment of nocturnal leg cramps, muscle cramps, spasms and spasticity associated with neuromuscular conditions, as well as exercise-associated muscle cramps. The stock last traded at $10.48.

GAIN Capital Holdings Inc. (NASDAQ: GCAP) had a director at the company buying shares last week. That director purchased 60,000 shares of the company at prices ranging from $6.89 to $7.14. The total came in at $400,000. The company provides trading services and solutions to retail and institutional customers worldwide. The stock closed most recently at $6.24.

These companies also reported insider buying this week: AMC Entertainment Holdings Inc. (NYSE: AMC), Atlantic Power Corp. (NYSE: AT), Patriot National Inc. (NYSE: PN) and Taubman Centers Inc. (NYSE: TCO).

With a truncated trading week, the end of the quarter and earnings right around the corner, volumes dropped off. But overall the first quarter has been huge for insider buying, and that is a positive for the markets.