Equities saw the week again in the background. Initially buoyed early in the week by better-than-expected inflation data comes Wednesday and Fed signaling rates are expected to move higher until it is clear that inflation has been tamed, sentiment sours again and shifts back to bearish trends for the most part of the year on offer.
So these are uncertain times. Volatility is the prevailing force in the markets and investors are looking for a signal that indicates which stocks are attractive to buy.
Fortunately, company insiders are sending a clear signal — even now, some are making significant purchases, of $1 million or more, in their own company’s stock, and that’s a signal that should grab the attention of any investor.
We used the Insiders’ Hot Stocks tool on TipRanks to find several stocks that have recently been the subject of multi-million dollar insider buys, and dug up their details, along with some recent analyst commentary. So let’s see what makes these names attractive to buy right now.
Celcuity Inc. (CELC)
First on our list of insider picks is Celcuity, a clinical-stage biotech company working on novel targeted therapies to treat various cancers. The company is focused on using insights into oncogenic pathways to create drug candidates with more precisely targeted cancer inhibition activity.
The company has two main research tracks, one based on its drug candidate gedatolisib, and the other based on its proprietary CELsignia platform. Gedatolisib is a potential breakthrough therapeutic agent, a first-in-class pan-PI3K and mTOR inhibitor, and has demonstrated efficacy in several clinical trials. The CELsignia technology uses the patient’s own cancer tumor cells to identify the pathway causing that particular disease, enabling accurate treatment based on individual patients.
The most recent update in the pipeline comes from the Phase 1b trial of gedatolisib as a treatment for advanced breast cancer. A publication earlier this month showed that patients, regardless of their PIK3CA mutation status, showed high response rates and median progression-free survival rates of 42.3 months for patients described as “treatment naive” in the advanced setting.
Also earlier this month, Celcuity announced that it had dosed the first patient in the Phase 3 VIKTORIA-1 study of gedatolisib as a treatment for HR+/HER2 advanced breast cancer. Patient dosing was key to unlocking a $100 million PIPE financing, making Celcuity eligible to draw a $20 million tranche on a $75 debt facility million.
Prior to that financial development, Celcuity had $57.5 million in cash and liquid assets and combined G&A and R&D expenses of $10.6 million as of the end of 3Q22.
As far as insiders are concerned, Celcuity’s largest recent purchase was made by CEO Brian Sullivan, who spent a hair under $1.5 million to pick up 260,869 shares of the stock. This “informational buy” brings his total share of the stock to more than $30 million.
Craig-Hallum analyst Alexander Nowak also takes an optimistic stance on Celcuity, highlighting its improved cash position. He writes, “The additional liquidity should provide the company with more than enough runway to get Geda through its critical and likely FDA approval… As the company began a pivotal study for what would be a high-potential drug, may be in second-line+ breast cancer patients with potential for other cancers, plus in combination with CELsignia, we continue to like the combination and recommend owning the stock via Geda + CELsignia data readouts.
This recommendation comes with a $20 price target, which suggests the stock will double in value over the next year. (To view Nowak’s track record, click here)
This biotech receives a Strong Buy consensus rating from the Street, based on 3 unanimously positive recent analyst reviews. The $22.50 average price target implies a hefty 125% gain from the current trading price of $10.01. (See CELC stock forecast on TipRanks)
Wolverine World Wide, Inc. (WWW)
Next up is Wolverine World Wide, a Michigan-based shoe manufacturer known for its Wolverine boots and shoes, as well as Hush Puppies, Saucony, and Keds brands. Wolverine is also the licensed maker of Caterpillar and Harley-Davidson shoes. The company’s products are truly available worldwide, in more than 200 countries.
In its latest quarterly release, for 3Q22, the company posted revenue of $691.4 million, with particular strength in the company’s Merrell brand, which posted revenue of $198.6 million. Adjusted diluted earnings per share came in at 48 cents. Revenues were up 8.5% year-over-year, while the EPS figure was down 14%. Both results fell short of expectations and the stock fell sharply, down 34%, on release.
The company attributed the missed sales and profits to several headwinds, including a general deterioration in macroeconomic conditions, higher retail promotional costs and ongoing supply chain disruptions.
Nevertheless, with the shares down 64% year-to-date, an insider must think they now offer excellent value.
The insider trading news on WWW comes from Jeffrey Boromisa, a member of the company’s board of directors, who bought 100,000 shares this week for nearly $1.05 million. This was a significant purchase for the CEO as it increased his total stake in the company to $1.68 million.
This stock has caught the attention of Piper Sandler analyst Abbie Zvejnieks, who sees cause for optimism here, saying of Wolverine, “Not only does WWW’s new brand structure of active, work, and lifestyle make more sense, but we’re seeing opportunities for synergies across the brand groups alongside clearer reporting structures We believe WWW is now investing prudently in the growth brands (asset) while maintaining the stable FCF generating brands (work) and we see an opportunity for either divestment or turnaround initiatives in the lifestyle category.”
In line with these comments, Zvejnieks rates the stock as Overweight (a buy), with a price target of $23 to indicate confidence in a strong 125% upside for the year ahead. (To view Zvejnieks track record, click here)
Of the 7 recent analyst reviews here, 2 are to buy and 5 are to hold, for an average buy consensus rating. The stock has a current trading price of $10.23 and an average price target of $15.17, implying it could grow as much as 48% by the end of next year. (See Wolverine stock forecast on TipRanks)
SoFi technologies (SOFI)
We’ll round out this list with SoFi Technologies, a personal finance company based in San Francisco. The company’s nickname is short for “Social Finance,” which describes SoFi’s approach to banking. The company operates online and serves 4.7 million customers with a full range of banking services, including home and personal loans, credit cards, investment banking, refinancing existing student and car loans, and credit scoring and budgeting.
In its recent Q3 report, SoFi reported revenue of $424 million in net income, up 56% from 3Q21 and a company record. This was driven by strong gains in the company’s three business segments, lending, technology platform and financial services, as well as a 61% year-over-year increase in total membership.
At the same time, SoFi saw a net loss of $74.2 million, or 9 cents per share. The net EPS loss was almost double the 5 cent loss in the same period last year.
Looking ahead, the company raised its revenue guidance for the third straight quarter. The increase was modest, from $1.508 billion to $1.513 billion to a new range of $1.517 billion to $1.522 billion. suspension of payments.
Insider sentiment about SOFI has turned positive, largely due to CEO Anthony Noto’s recent purchase of 1,134,065 shares for $5.005 million. The purchase was by far the largest of several purchases Noto has made in recent months, raising its stake in the company to more than $23.8 million.
Noto is not the only bull here. Piper Sandler’s five-star analyst Kevin Barker takes an optimistic stance on the finance company’s prospects, writing in response to the Q3 print: “We were particularly encouraged to see the accelerated growth in deposits that will improve the company’s funding profile and boost its reliance on profit on sales will diminish revenue.This funding wind coupled with an increase in student loan refi income should continue momentum into 2023..We expect SOFI to outperform its peers as EBITDA continues to grow and progressing toward GAAP profitability by 4Q23.”
Looking ahead for the stock, Barker places an Overweight (Buy) rating on SOFI stock, along with a $7.50 price target, implying a potential 62% gain over the next 12 months. (To view Barker’s track record, click here)
SoFi Technologies has 11 recent analyst ratings on file, with a 7 to 4 breakdown favoring Buy over Hold for a moderate buy consensus rating. The stock is priced at $4.64 and has an average price target of $7.18, suggesting 55% upside potential over a year. (See SoFi stock forecast on TipRanks)
To find great ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that brings together all of TipRanks’ stock insights.
disclaimer: The opinions expressed in this article are solely those of the named analysts. The content is for informational purposes only. It is very important to do your own analysis before making an investment.