Using TipRanks’ popular Insiders’ Hot Stocks tool, we found which stocks best-performing corporate insiders like right now. We differentiate between informative and uninformative insider transactions in order to find the most compelling opportunities.
Uninformative transactions indicate that an insider is buying/selling shares for reasons that do not necessarily indicate confidence in the company, such as exercising share options. In contrast, informative transactions are deliberately made by insiders, often because they feel the stock is undervalued.
In this case, we looked at stocks that exhibit strong buy indicators based on informative transactions of top insiders who are company executives, board members or 10 percent shareholders of publicly traded companies. We also used all four insider trading strategies:
So now let’s check out the three soaring stocks that are seeing particularly interesting insider buying right now:
MyoKardia Inc (MYOK)
On August 16, Sanofi snapped up 350,000 shares in MyoKardia (NASDAQ: MYOK) worth about $12,425,000. >10% owner Sanofi’s total Myokandia shareholding now stands at about $187 million.
Shares in MyoKardia have spiked 242% in the last three months from $13 to $44. Prices rose on MyoKardia’s groundbreaking heart disease study for its Mavacamten lead drug candidate. “Going from NYHA Class III to Class I is really impressive from the point of view of patient symptoms…going from fatigue with mild exertion to being completely asymptomatic,” said Marc Semigran, CMO of MyoKardia.
As a result of the data, and the efficacy on peak VO2 [maximum oxygen consumption], MyoKardia is now planning to meet with the FDA and bypass a Phase IIb trial. Going straight to a registration study could cut as much as 18 months out of the development timeline. The stock has a Strong Buy analyst consensus rating with a $56 average analyst price target (27% upside).
