Falls can be very painful, but they can also bring many opportunities, as lower stock prices begin to make entry costs more attractive. However, before seizing these opportunities, investors need to find a recognizable brand that will set them apart.
A popular message to follow is to buy from confidential information, transactions made by high-ranking company executives whose positions give them the “inside” of their company’s potential prospects – and therefore the share prospects.
These executives hold senior positions and are responsible for making profits for both the shareholders and the board of directors of the company, as well as for ensuring the future return of the shares. Having this responsibility and having their own inside information does not prevent them from trading their own corporate shares – and to balance these conditions of competition, federal regulators require trustees to publish their trading activities regularly. Micro-investors can track these trades through the Insiders’ Hot Stocks data tool at TipRanks.
We opened the database to start monitoring the confidential information. Using the internal trading tool, we gathered the details for two shares with recent strong trades from the company executives. It’s not a garden variety business either, it’s a multi-million dollar stock movement, the kind that can change the needle in the ointment – and send the clear message that micro-investors want. It also does not hurt that both stocks are admired by the analyst community, as long as you earn a “Strong Market” consensus rating.
Day One Biopharmaceutical (DAWN)
We will start with Day One Biopharma, a player with little capitalization in the biopharmaceutical research scene. This clinical research company is differentiating itself by focusing on developing new treatments for childhood cancers, especially genetically determined childhood cancers. This is a field with many openings, as in the last 25 years only 12 new pediatric oncology drugs have been approved.
Day One aims to have the next approved drug in its field and has a promising candidate in DAY101, the subject of its clinical trial programs. DAY101, or tovorafenib, is a type II pan-RAF kinase inhibitor currently undergoing at least four clinical trials.
The most advanced of these is the central FIREFLY-1 study in the treatment of recurrent low-grade pediatric glioma. The company released data from this Phase 2 trial earlier this month, showing a 64% overall response rate (ORR) and a 91% clinical benefit rate (CBR) for the first 22 patients. The drug was studied as monotherapy. Day One plans to launch a central Phase 3 clinical trial in this research area and has scheduled patient dosing to begin in the 3rd trimester of the 22nd.
Also in the clinical section, Day One announced in May that the first patients had been dosed in a Phase 1b / 2 tovorafenib in combination with pimasertib for the treatment of RAF-modified solid tumors. Both drugs in this trial have shown great promise when used in pediatric patients. This study aims to use it in a study in adolescents and adults. The company will begin the study with 25 patients aged 12 years and older, with the Phase 2 part of the trial evaluating additional expansion cohorts.
These top tests are backed by Day One cash position. Day One had over $ 262 million in cash at the end of the first quarter of this year. In addition, the company, just last month, made a significant capital increase through a public sale of shares. The public offering raised $ 172.5 million in gross revenue.
And that brings us to confidential transactions. Two institutional investors bought $ 29.5 million worth of stock – but board member Michael Gladstone also made a significant purchase. His purchase of 766,667 shares cost him just over $ 11.5 million and increased his total stake in the company to $ 12.27 million.
Day One also has its fans among Wall Street analysts. Covering this stock for Wedbush, analyst Robert Driscoll sees the company’s recent data releases as the focal point.
“Overall, although intermediate data, we are impressed and believe that the data seems to validate the unique profile of tovorafenib, which remains well on track to display front-line data in the first quarter of 2023 which we expect to be sufficient for approval. First, although a formal comparison is excluded from trial warnings, including differences in enrolled patients and response evaluation criteria, we note that efficacy is currently monitored significantly higher than historical chemotherapy data of patients receive previous treatment, “said Driscoll.
Based on the above, it is not surprising that Driscoll reiterated its rating for Oversight (ie Purchase) on DAWN shares. At $ 35, the analyst believes that the shares could double in the next twelve months. (To view Driscoll history, Click here)
Lots of promising research pieces and lots of cash will always get a positive biopharma alert – and Day One’s Strong Buy consensus is unanimous, based on 3 recent analyst reviews. The stock is selling for $ 17.45 and the average target price of $ 37.50 indicates a probability of ~ 115% up in the future. (See DAWN stock forecast at TipRanks)
HireRight Holdings (HRT)
From biopharma we will change speed and change lane in human resources. Human resources are a vital part of every company today, and HireRight offers human resources departments the necessary solutions to history control, compliance and risk management issues for more than 40,000 B2B customers worldwide. HireRight was a leader in online human resource control and last year had strong numbers, with 110 million staff views generating 29 million reports.
We have heard a lot of news in recent months about how the labor market has recovered from the worst of the COVID crisis, as well as headlines about new employee mobility. Both were reflected in HireRight’s 1st quarter earnings report for the 22nd year. The company reported 33% year-on-year profits, which reached $ 198.7 million. Revenues also showed strong gains. Total operating income increased about 3.5-fold year-on-year, jumping from $ 5.7 million to $ 20 million, while diluted EPS rose at a similar rate, moving from 12 cents a year ago to 37 cents in the current report.
On the forefront of confidential information transactions, HireRight has seen significant acquisitions by investment firm Stone Point Capital – but the one that caught our eye was James Carey of the Board of Directors. Carey, whose purchase has helped boost the confidentiality climate here, has spent more than $ 22.2 million to buy 1,504,981 HRT shares in recent weeks.
Covering HireRight for Jefferies, analyst Hamzah Mazari posed the rhetorical question, “What to do with HRT shares?”
Getting an answer, he says without a doubt: “Buy more if you believe that HRT can hit organic growth in the long run from high single digits to low double digits and the company can implement technology and automation initiatives that lead to catchup margins against peers. The company expects to complete its investment initiatives in technology and automation by the end of 2023 and our sense is that we will see gradual benefits from investments in technology as HRT presents applications in phases “.
Following his optimistic stance, Mazari gives HireRight shares a market rating and a $ 23 target, which means a 57% uptrend in the future. (To view Mazari history, Click here)
Overall, with 5 recent analyst reviews that have been recorded, all positive, HireRight can enjoy a unanimous consensus for a strong purchase from Street. The shares are priced at $ 14.65 and have an average target of $ 21.20, indicating a possible 12-month uptrend ~ 45%. (See HireRight stock forecast at TipRanks)
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Denial of responsibility: The views expressed in this article are solely those of the projected analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.