Investing

Here's What Insiders Are Buying to Wrap Up the Year

Trey Thoelcke

Published: December 31, 2023 10:10 am

Last Updated: December 31, 2023 2:06 pm

As the year wound to a close, biotechs were in focus among the notable insider purchases. One buyer scooped up shares in two different stocks. Meanwhile, a chief executive made a return trip to the buy window to bolster a stake in an independent oil and gas company.

A well-known adage reminds us that corporate insiders and 10% owners really only buy shares of a company because they believe the stock price will rise and they want to profit from it. Thus, insider buying can be an encouraging signal for potential investors. This is all the more so during times of uncertainty in the markets, and even when markets are near all-time highs.

Remember that when the earnings-reporting season is in full swing, many insiders are prohibited from buying or selling shares. Below are some of the more notable insider purchases that were reported in the final week of the year.

Elicio Therapeutics

• Buyer(s): director
• Total shares: more than 1.2 million
• Price per share: $5.81
• Total cost: over $7.0 million

This director is also a beneficial owner of Elicio Therapeutics Inc. (NASDAQ: ELTX) with a stake of over 1.9 million shares. Shares of this Boston-based biotech company jumped more than 30% in the past week to over $8 apiece, well above the director’s purchase price. However, they are still down more than 18% since the company merged with Angion Biomedica last summer. The only price target seen is up at $12.

Syros Pharmaceuticals

• Buyer(s): director
• Total shares: almost 905,000
• Price per share: $4.42
• Total cost: nearly $4.0 million

This biotech is also based in the Boston area. Syros Pharmaceuticals Inc. (NASDAQ: SYRS) shook up its top management and also announced some encouraging Phase 2 trial data in December. Shares are up more than 184% in the past month and were last seen trading above $7. However, the consensus price target of four analysts is up at $20. The stock has not traded at that level in almost two years. (Here are 17 things you didn’t know your pharmacist could do.)

Astria Therapeutics

• Buyer(s): 10% owner Perceptive Advisors
• Total shares: 740,000
• Price per share: $6.20
• Total cost: almost $4.6 million

This buyer is an investment firm focused on life sciences stocks. Besides Astria Therapeutics Inc. (NASDAQ: ATXS) shares, it purchased Verrica Pharmaceuticals stock last week (see below) and those of other several other biotechs throughout 2023. Astria shares are up more than 72% in the past month. The timing of this purchase is fortunate, as shares were last seen changing hands for around $8 apiece. Analysts see plenty more room for the stock to run, given their consensus price target of $20.86.

Verrica Pharmaceuticals

• Buyer(s): 10% owner Perceptive Advisors
• Total shares: over 504,600
• Price per share: $6.00 to $6.89
• Total cost: more than $3.2 million

After buying more than $6.9 million worth of shares in the prior week, this buyer scooped up more Verrica Pharmaceuticals Inc. (NASDAQ: VRCA) shares going into year’s end, lifting the stake to almost 6.78 million shares. A partner of the dermatology therapeutics company recently reported positive Phase 3 trial results. Shares are up more than 89% since then, well above the buyer’s latest purchase price range. The consensus price target is all the way up at $12.83, and each of the three analysts who follow the stock recommends buying shares.

Unifi

• Buyer(s): director
• Total shares: 500,000
• Price per share: $5.75
• Total cost: almost $2.9 million

This director’s stake of more than 2.32 million Unifi Inc. (NYSE: UFI) shares makes the director a beneficial owner. The timing of this purchase is fortunate, as the stock was last seen trading near $7. However, it is only marginally higher than when the latest quarterly results were released, as well as down more than 20% year to date. Note that another 10% owner parted with around $1.5 million in shares of this synthetic textile manufacturer at the end of November.

HighPeak Energy

• Buyer(s): CEO Jack Hightower
• Total shares: more than 150,400
• Price per share: $14.14 to $14.50
• Total cost: over $2.1 million

Here is another buyer who is also a 10% owner, with a stake of almost 4.51 million shares. He has been building that stake in Texas-based independent oil and gas exploration and development company HighPeak Energy Inc. (NASDAQ: HPK) with occasional purchases of shares for more than a year. The $23.07 consensus price target suggests over 57% upside potential in the next year, but note that it is less than the 52-week high of $30.15.

And Other Insider Buying