Smart Money Trends: 5 Biotech Stocks Being Bought Up By Insiders and Institutions

By
A A A

(Written by Alexander Crawford, list compiled by Daniel Guttridge. Institutional data sourced from Fidelity, insider data sourced from Yahoo! Finance.)

If you’re interested in investing in the biotech sector but don’t know where to start, one helpful tool is the buying trends of institutional investors and company insiders.

When a stock sees increased buying from these investors, it’s a signal to take a second look.

Institutional investors have access to sophisticated research and have a lot of experience in choosing investments.

Company insiders know more about their companies than anyone else. For these reasons, these investors are referred to as the “smart money.”

To provide you with some ideas, we ran a screen on stocks from the biotech industry for those that have seen significant net institutional buying over the current quarter and significant net insider buying over the last six months.

Clearly these investors believe in these companies. Do you?

Use this list as a starting-off point for your own analysis. 

Analyze These Ideas (Tools Will Open In A New Window)

List sorted by net institutional purchases as a percent of share float.

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

1. Sequenom Inc. (SQNM): Provides products, services, diagnostic testing, applications, and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural and livestock research. Market cap of $471.11M. Net institutional shares purchased over the current quarter at 11.4M, which is 12.71% of the company's 89.68M share float. Net insider shares purchased over the last six months at 32.85K, which is 0.04% of the company's 89.68M share float.

2. PharmAthene, Inc. (PIP): Engages in the development and commercialization of medical countermeasures against biological and chemical weapons in the United States. Market cap of $75.24M. Net institutional shares purchased over the current quarter at 2.4M, which is 7.94% of the company's 30.21M share float. Net insider shares purchased over the last six months at 430.0K, which is 1.42% of the company's 30.21M share float.

3. Sunesis Pharmaceuticals Inc. (SNSS): Focuses on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. Market cap of $50.45M. Net institutional shares purchased over the current quarter at 1.5M, which is 5.74% of the company's 26.15M share float. Net insider shares purchased over the last six months at 100.0K, which is 0.38% of the company's 26.15M share float.

4. Threshold Pharmaceuticals Inc. (THLD): Engages in the discovery and development of drugs targeting the microenvironment of solid tumors for patients living with cancer. Market cap of $64.27M. Net institutional shares purchased over the current quarter at 1.2M, which is 4.31% of the company's 27.81M share float. Net insider shares purchased over the last six months at 1.97M, which is 7.07% of the company's 27.81M share float.

5. Theravance Inc. (THRX): Engages in the discovery, development, and commercialization of small molecule medicines for various therapeutic areas, including respiratory disease, bacterial infections, and central nervous system (CNS)/pain. Market cap of $1.61B. Net institutional shares purchased over the current quarter at 1.8M, which is 4.14% of the company's 43.52M share float. Net insider shares purchased over the last six months at 5.19M, which is 11.92% of the company's 43.52M share float. 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: PIP , SNSS , SQNM , THLD , THRX

Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

Most Active by Volume

48,099,947
  • $16.09 ▲ 0.50%
40,277,806
  • $102.50 ▲ 0.24%
40,236,499
  • $19.57 ▲ 2.35%
31,092,510
  • $49.75 ▲ 0.65%
30,795,218
  • $34.92 ▲ 0.78%
29,910,855
  • $3.63 ▲ 0.83%
24,019,154
  • $13.06 ▼ 0.38%
23,753,906
  • $74.82 ▲ 1.31%
As of 8/29/2014, 04:04 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com