Investing

Massive Biotech Purchases Highlight Insider Buying: Incyte, TransDigm, Prospect Capital, Xenoport and More

Lee Jackson

Published: February 20, 2016 10:10 am

Last Updated: January 13, 2020 12:57 pm

Finally, after what seemed like the longest six weeks in history, the market staged at least a solid attempt to rally and restore investor confidence this past week. Firming oil prices, aided by a pledge from some top producers to freeze production, some decent earnings reports, along with just a sense of relief by investors that a collapse was not imminent, all helped to move indexes higher. Despite the move up, insiders continued to buy shares in a big way this past week.

We cover insider buying every week at 24/7 Wall St., and we like to remind our readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains a positive indicator.

Here are some of the companies that reported notable insider buying this past week.

Incyte Corp. (NASDAQ: INCY) saw Baker Brothers, one of the top biotech investors on Wall Street, come in and make a staggering purchase of stock. It bought a total of 3,138,592 shares at prices that ranged from $61.93 to $70.72 apiece. The total for the purchase came to a humongous $205 million. Incyte focuses on the discovery, development and commercialization of proprietary therapeutics in oncology. It offers Jakafi for the treatment of myelofibrosis and polycythemia vera cancers. The shares were trading on Friday’s close at $72.70.

TransDigm Group Inc. (NYSE: TDG) saw a director at the company who works at Berkshire Partners buying stock last week. Robert Small acquired a total of 517,300 shares of the stock at prices that fell between $188.18 and $202.28 per share. The total for this gigantic purchase came to an even $100 million. The company designs, produces and supplies aircraft components in the United States. The stock closed on Friday at $207.41, so a well-timed purchase, it appears.

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