Key points
- Imuneering is an insider-bought, analyst-backed oncology-focused pharmaceutical company.
- GEN Restaurant Group is a tasty play on the restaurant industry with growth forecasts, insider buying and analyst support.
- Rezolute, Inc. is focused on metabolic treatments and is embarking on a turnaround with support from insiders, institutions and analysts.
It is one thing for insiders to buy a stock, but it is another thing if the market also agrees with the investment. Only insiders would try to prop up a failing market, which is a foolish undertaking. At the very least, insider buying has little impact on the stock price without support from the broader market.
Since analysts are on board, stocks on this list could see significant upside in the coming quarters. Not only are these stocks bought by insiders and supported by analysts, but they are also trading at rock bottom prices and well below their lowest targets, implying a minimum double-digit upside for each.
Immune insiders buy after release of promising data
You from Imuneering (NASDAQ: IMRX) Major insiders, including two directors, the CEO and the CAO, bought shares in mid-March following critical data from a Phase 1 clinical trial. The study revealed that the company’s lead candidate is not sufficiently differentiated to be approved as a stand-alone treatment, but its tolerance predisposes it to combination with other drugs. Insiders own about 23% of these shares, and institutions own another 67%.
Institutions sold at breakeven in the first quarter before release, but bought in the previous four quarters. The sale was primarily by Cormorant Asset Management, which still owns about 12% of the shares. Coincidentally, Cormorant sold on the day news of the trial broke, catalyzing a significant drop in the stock price that insiders took advantage of. Institutional activity could also shift toward buying now that stocks are trading at record lows.
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The news has caused some analysts to scale back their targets, but the net result is bullish for the market. Analysts rate this stock a Moderate Buy, up from last year’s hold, and see it advancing 20% to the low end of their range. The consensus target implies an upside of around 510% and aligns with most of the new targets.
The GEN restaurant group is really hot
GEN Restaurant Group (NASDAQ:GENK) operates an all-you-can-eat Korean-style barbecue chain in major metropolitan areas. The company is growing and profitable, with margins expected to expand significantly over the next year. With locations primarily in California and select areas, the addressable market is huge and could result in four-digit growth in the coming years.
As for insider trading, five GENK insiders have made six purchases in the last ninety days, and institutional activity is also picking up. Insiders who bought included the CEO, CFO and two major shareholders. Insiders own just 0.10% of the company; most are owned by institutions and hedge funds, which account for 85% of holdings. Recent purchases have been made by Vanguard Group, Citadel and Scion Asset Management. Scion Asset Management is managed by Michael Burry, protagonist of the film The Big Short.
Analysts like the flavor of GEN Restaurant Group’s prospects. The four tracked by Insidertrades.com who cover the stock rate it a Buy and see it advancing 10% at the low end of their range. The consensus implies an upside of more than 350%.
Rezolute, Inc. treatments have performed well in clinical trials
Resolute, Inc. (NASDAQ:RZLT) is a biotechnology company focused on metabolic diseases, including glucose imbalances and diabetes-related disorders. Analysts noted that two treatments are performing well in clinical trials and could eventually turn a profit. Three analysts cover this stock and rate it a Buy. They see it advancing more than 150% at the low end of their range and around 360% at the consensus. Recent activity has seen stocks trading at the high end for a gain of nearly 700%.
Insiders and major shareholders own about 18% of the shares and started buying up in bulk this quarter. So far, domestic activity has been very weak, although bullish, with no selling. Internal purchasing includes the CFO, the CMO (chief medical director), and a director. Institutional buying also increased in the first quarter and their holdings reached nearly 85%.
Companies in this article:
| Agency | Current price | Price change | Dividend yield | P/E ratio | Consensus assessment | Consensus price target |
|---|---|---|---|---|---|---|
| Resolution (RZLT) | $2.12 | +12.2% | N/A | -1.93 | Acquire | $8.67 |
| GEN Restaurant Group (GENK) | $10.09 | -1.4% | N/A | N/A | Acquire | $14.33 |
| Immunization (IMRX) | $2.39 | -5.5% | N/A | -1.26 | Moderate purchase | $15.50 |
Experience
Thomas Hughes has been working with InsiderTrades.com since 2019.
Areas of expertise
Technical Analysis, S&P 500; retail, consumer goods, consumer staples, dividends, high yield, small cap, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past experience
Market observer, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.