Things are heating up in the biotechnology space, with a flurry of recent initial public offerings and some notable insider purchases of the past week or so. Officers, directors, and beneficial owners have shelled out more than $10 million on each of the following four biotech stocks.

Wall Street expectations for these stocks are huge for the coming year, though some have seen falling share prices so far this year. Let’s take a quick look at these transactions.

Is Insider Buying Important?

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.

The earnings-reporting season is all but over, so few insiders are prohibited from buying or selling shares. Below are some of the more notable insider purchases of biotechs that were reported in the past week, starting with the largest and most prominent.

Tenaya Therapeutics

• Buyer(s): a director
• Total shares: about 35.7 million
• Price per share: $0.70
• Total cost: nearly $25.0 million

This director took advantage of a public offering of shares to build his Tenaya Therapeutics Inc. (NASDAQ: TNYA) stake to more than 49.3 million shares.

The San Francisco area biopharmaceutical company is focused on treatments for cardiovascular diseases. It recently received $8 million in funding from the California Institute for Regenerative Medicine, and back in December released promising data from a Phase 1 clinical trial.

The share price is down over 64% since the beginning of the year and trading around an all-time low near $0.40. The consensus price target is up at $18.12, likely skewed by one analyst’s $40 high price target. Nine analysts cover the stock, and all of them recommend buying shares, three of them with Strong Buy ratings. H.C. Wainwright, who has that high target price, reiterated its Buy rating last month.

Janux Therapeutics

• Buyer(s): 10% owner R.A. Capital Management
• Total shares: over 824,000
• Price per share: $29.90 to $31.50
• Total cost: more than $25.3 million

San Diego-based Janux Therapeutics Inc. (NASDAQ: JANX) recently posted a smaller-than-expected fourth-quarter net loss. The preclinical stage biopharmaceutical company also recently announced positive clinical trial data.

Shares have retreated over 43% since the start of this year but were last seen trading within the purchase price range above. Analysts see plenty of room for shares to run, given their consensus price target of $87.85. All but one of the 14 analysts who cover the stock recommend buying shares, and they have since the beginning of the year.

Note that the same buyer recently picked up some shares of biotechs 89bio Inc. (NASDAQ: ETNB) and Sionna Therapeutics Inc. (NASDAQ: SION) as well.

Aurinia Pharmaceuticals

• Buyer(s): a director
• Total shares: 1.6 million
• Price per share: $7.47 to $8.10
• Total cost: more than $12.7 million

While some officers were parting with shares, this director bucked the trend and boosted his stake in this Canadian clinical-stage biopharmaceutical company to more than 10.0 million shares.

Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) also just reported better-than-projected quarterly results. This followed last year’s restructuring, which included workforce reductions, to focus on lupus on autoimmune efforts.

The stock is about 9% lower year to date but 50% or so higher than a year ago. The $9.83 mean price target suggests that the analysts see around 24% upside in the next 12 months. The consensus recommendation is to buy shares.

Note that CEO Peter Greenleaf was among the officers selling shares. He parted with more than 2.8 million shares this month.

Moderna

• Buyer(s): CEO Stephane Bancel and another director
• Total shares: almost 192,000
• Price per share: $30.38 to $31.96
• Total cost: about $6.0 million

Despite speculation that vaccine-maker Moderna Inc. (NASDAQ: MRNA) may be in the sights of Health and Human Services Secretary RFK Jr., the stock has popped more than 18% in the past week. Shares were changing hands for more than the purchase price range above. However, the stock is still down more than 21% year to date.

The $55.05 consensus price target signals more than 56% upside in the coming year. However, analysts on average recommend holding shares, and their sentiment has not yet budged since the start of the year. Barclays downgraded the stock to Equal Weight last month, while UBS maintained a Buy rating.

Note that Bancel’s stake has increased to more than 9.2 million shares, as he acquired the lion’s share of the shares indicated above.

And Other Insider Buying

In the past week or so, some insider buying was reported at Advance Auto Parts, Biohaven, BlackRock, Bloomin’ Brands, Caesars Entertainment, Chipotle Mexican Grill, CVR Energy, Diamondback Energy, Elanco Animal Health, Herbalife, HF Sinclair, Macerich, Marvell Technology, Matador Resources, MGM Resorts, Old Dominion Freight Line, Park Hotels & Resorts, Sempra, SolarEdge Technologies, Vertex, and Warner Bros. Discovery.

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