Which are the five hottest insider trading stocks right now? Using TipRanks‘ Insider Hot Stocks tool, we split the transactions into informative and uninformative insider transactions so that we can find the best investing 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 believe the stock is undervalued.
Here we found five hot stocks with “strong positive” indicators based on informative transactions of top insiders who are company executives, board members or 10% shareholders of publicly traded companies. These are the people who really know what is in store for the company, and can make their investing decisions accordingly.
So here are the five stocks insiders are buying now:
Insider Stock Picks: Kindred Biosciences (KIN)
One of the first pet biotech companies in the world, Kindred Biosciences Inc (NASDAQ:KIN) has soared by over 8% in the last three months. Kindred has a unique strategy of selecting drugs, biologics and targets that have been validated in humans and developing animal versions for our beloved pets.
TipRanks reveals that the stock has a Strong Positive stock insider signal. The reason: Park West Asset Management picked up KIN shares worth $4.5 million on July 14. The over-10% owner now holds $18 million plus of KIN stock.
Park West’s activity is closely tracked by investors because of its strong track record. On a one-year basis, Park West has delivered a 63% profitable transaction and impressive 16.9% average return across its 16 transactions.
Insider Stock Picks: Amicus Therapeutics (FOLD)
Amicus Therapeutics, Inc. (NASDAQ:FOLD) has seen its stock explode by an incredible 91% over the last three months. Prices spiked after FOLD unexpectedly announced that it can submit its drug Galafold to the FDA for consideration. The drug is intended to treat a rare genetic disease called Fabry Disease.
Top Cowen & Co analyst Ritu Baral is optimistic that the rally can continue. She has a $16 price target on the stock which suggests a significant 25% upside from the current share price. Baral sees the likelihood of approval for Galafold in 2H18 as “good.” She says: “Given precedent of robust EU market uptake and US patient numbers, we see potential peak sales of between $200mm-$400mm.”
Following the FDA announcement, over-10% owner Perceptive Advisors ramped up its FOLD holding by $18.4 million. Perceptive now has $223 million in FOLD shares, about a quarter of its total $1 billion insider holdings. Five-star Perceptive Advisors is ranked a very impressive No. 19 out of close to 38,000 insiders tracked by TipRanks.
Insider Stock Picks: Sigma Designs (SIGM)
System-on-chip (SoC) semiconductor company Sigma Designs Inc (NASDAQ:SIGM) has the backing of one of the most famous insiders in the world — hedge fund guru George Soros. On July 11, Soros Fund Management bought shares in Sigma Designs worth nearly $250,000. This is the fund’s sixth consecutive insider transaction in the last three months. These transactions add up to $5.5 million — about a quarter of Soros’ total Sigma holding.
Sigma Designs is part of the wave of “smart home” technologies. As well as media and video processing, the company gives you remote control of your home via existing wires and its “Z-Wave” wireless radio frequency system.
Insider Stock Picks: Aldeyra Therapeutics (ALDX)
This biotech stock has the double-whammy of insider and Street support. Aldeyra Therapeutics Inc (NASDAQ:ALDX) has a “strong buy” analyst consensus rating and a “strong positive” stock insider signal.
Shares fell slightly last month on a narrow technical miss for its itchy eye drug, ADX-102. Crucially, however, the drug still demonstrated statistical significance. “We remain encouraged by ADX-102’s sustained ocular itch reduction and clear and statistically significant therapeutic benefit over the placebo. In addition, since no therapy is currently available for late-phase allergy that does not respond to traditional antihistamine we believe ADX-102 still has a sizable market opportunity” says Canaccord Genuity analyst John Newman.
His $12 price target translates is a 142% upside from the current share price.
Twelve days ago, five-star Perceptive Advisors picked up $1.3 million of ALDX stock. The insider now has a total ALDX holding of close to $10 million.
Insider Stock Picks: International Flavors & Fragrances (IFF)
Multi-billion-dollar global corporation International Flavors & Fragrances Inc (NYSE:IFF) is the fifth hot insider stock. This taste-and-smell maker is behind thousands of the scents and flavors we experience every day. IFF even has a greenhouse of over 2,000 plants, from which it can harvest natural smells and reproduce them for commercial use.
Just one insider, Singapore-based investment firm Winder Investment PTE, has bought shares in IFF over the last three months. These shares are worth a huge $92 million. Most recently, Winder bought $5.3 million of shares on July 14 and now the firm owns $1 billion IFF shares. IFF is Winder’s only reported insider holding in its portfolio.
TipRanks doesn’t just track insider transactions. We also give investors the latest insight into the activity of 4,500 analysts, 5,000 financial bloggers and even 200 hedge fund managers.