ObsEva (NASDAQ:OBSV) stock is taking off on Friday as investors react to insider buying at the clinical-stage biopharmaceutical company.
Ernest Loumaye, a member of the Board of Directors at ObsEva, purchased 4 million shares of OBSV stock on Tuesday. That was only just revealed in a filing with the U.S. Securities and Exchange Commission (SEC).
The ObsEva director purchased those shares for an average price of 11 cents each. Following this transaction, Loumaye now directly holds 6 million shares of OBSV stock.
What This Means for OBSV Stock
News of an insider buying shares of a stock often results in a rally. That’s due to the purchase inspiring confidence in shareholders. That appears to be what’s happening today as the price of OBSV stock rises higher.
It’s also worth mentioning that today’s news brings with it heavy trading of OBSV stock. As of this writing, more than 14 million shares have changed hands. That’s a massive surge compared to its daily average trading volume of 2.6 million shares.
Investors will also want to keep in mind OBSV’s penny stock status. The company’s shares last closed normal trading hours at around 11 cents. Its market capitalization is also only about $11 million. Both of these factors make the stock more susceptible to volatility.
OBSV stock is up 93.4% as of Friday morning.
Investors looking for even more stock market news will want to keep reading!
We’ve got all of the latest stock coverage traders need to know about on Friday. That includes the biggest pre-market stock movers this morning, what’s happening with Advanced Micro Devices (NASDAQ:AMD) stock and more. You can read up on all that news at the following links!
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.