Key Points
- Imuneering is an oncology-focused pharma company that insiders buy and analysts support.
- GEN Restaurant Group is a tasty play on the restaurant industry with growth in the forecast, insider buying, and analysts' support.
- Rezolute, Inc. is focused on metabolic treatments and is about to enter reversal with insider, institutional, and analyst support.
It’s one thing for insiders to buy a stock, but it is something else if the market is also on board with the investment. Insiders alone may try to prop up a failing market, which is a fool's errand. At the very least, insider buying has a limited impact on stock price without the support of the broader market.
Because analysts are on board, the stocks on this list could see a significant upside in the coming quarters. Not only are these stocks bought by insiders and supported by analysts, but they are also trading at rock-bottom prices and well below the lowest targets, implying a minimum double-digit upside for each.
Immuneering Insiders Buy After Promising Data Is Released
Six of Imuneering’s (NASDAQ: IMRX) key insiders, including two directors, the CEO and the CAO, bought shares in mid-March following critical data from a phase-1 clinical study. The study revealed that the company’s leading candidate is not differentiated enough to be approved as a standalone treatment, but tolerance sets it up for combination with other drugs. Insiders own about 23% of this stock, and institutions own another 67%.
Institutions sold on balance in Q1 before the release but bought for four quarters prior. Selling was primarily by Cormorant Asset Management, which still owns about 12% of the stock. Coincidentally, Cormorant sold the day the trial news was released, catalyzing a significant drop in the share price that insiders took advantage of. Institutional activity may also shift to buying now that shares are trading at historical lows.
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The news caused some analysts to trim their targets, but the net result is bullish for the market. Analysts rate this stock a Moderate Buy, up from last year’s Hold, and see it advancing by 20% at the low end of their range. The consensus target implies about 510% upside and aligns with most fresh targets.
GEN Restaurant Group Is Smoking Hot
GEN Restaurant Group (NASDAQ: GENK) operates a chain of all-you-can-eat Korean-style BBQ houses in major metropolitan areas. The company is growing and profitable, with margins expected to expand significantly over the next year. With locations primarily in California and select areas, the addressable market is tremendous and may result in quadruple-digit growth over the next few years.
Regarding insider trading, five GENK insiders made six purchases in the last ninety days, and institutional activity is also picking up. Insiders who bought include the CEO, CFO, and two major shareholders. Insiders own a small 0.10% of the business; the bulk is owned by institutions and hedge funds, which account for 85% of the holdings. Recent purchases are by Vanguard Group, Citadel, and Scion Asset Management. Scion Asset Management is run by Michael Burry, who was characterized in the movie The Big Short.
Analysts like the flavor of GEN Restaurant Group’s outlook. The four tracked by Insidertrades.com who cover the stock, rate it as a Buy and see it advancing 10% at the low end of their range. The consensus implies more than 350% upside.
Rezolute, Inc. Treatments Trending Well In Clinical Studies
Rezolute, Inc. (NASDAQ: RZLT) is a biotechnology company focused on metabolic diseases, including glucose imbalances and diabetes-related ailments. Analysts have noted that two treatments are trending well in clinical studies and may eventually produce profits. Three analysts cover this stock and rate it as a Buy. They see it advancing more than 150% at the low end of their range and about 360% at the consensus. Recent activity has the stock trading at the high end for a nearly 700% gain.
Insiders and major shareholders own about 18% of the stock and started buying in bulk this quarter. Until now, insider activity has been very light, although bullish, with no selling. Insiders buying include the CFO, CMO (chief medical officer), and a director. Institutional buying also spiked in Q1 and has its holdings up to nearly 85%.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Rezolute (RZLT) | $5.01 | +1.2% | N/A | -3.94 | Buy | $24.13 |
| GEN Restaurant Group (GENK) | $7.96 | -3.0% | N/A | 46.82 | Buy | $13.17 |
| Immuneering (IMRX) | $2.04 | flat | N/A | -1.04 | Moderate Buy | $12.80 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
