Investing

Massive Biotech Insider Buy Highlights Volatile Trading Week: Acadia, Conn's, William Lyon, Summit Midstream and More

Lee Jackson

Published: April 10, 2016 10:05 am

Last Updated: January 13, 2020 10:58 am

In a week that was eerily reminiscent of the first six weeks of 2016, the market took investors on a crazy ride that finally came to an end on Friday. Triple-digit up and down days were once again the norm, and that is a stat that makes many on Wall Street a little queasy. Despite the fact that first-quarter earnings will come in big next week, some serious insider buying hit the tape.

We cover insider buying every week at 24/7 Wall St., and we like to remind 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.

Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) had a big biotech player buying stock last week. A director at the company, biotech hedge fund the Baker Brothers, bought a total of 1,449,090 shares at prices that ranged from $25.94 to $28.52. The total for the big-time purchase came in at a whopping $39 million. The stock was up huge on news that the FDA’s advisory committee of outside experts voted in favor of giving Nuplazid the green light by a 12 to two margin. The committee stated that it believed the potential benefits of using Nuplazid as a treatment for Parkinson’s disease psychosis outweighed the compound’s potential risks. The shares closed trading on Friday at $31.78, so solid timing, it would appear.

William Lyon Homes (NYSE: WLH) had a 10% owner of the company adding to a position. GMT Capital bought an additional 1,155,619 shares of the stock at prices between $14.21 and $14.27 apiece. The total for the buy came to $16 million. The company designs, constructs, markets and sells single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington and Oregon. The stock closed Friday at $15.17.

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