Michael Chambers, a director at Sarepta Therapeutics (SRPT), recently bought 37,038 shares. The buy increased his stake by 15%, and came to a total cost of $4,995,728.
This is the first insider buy since last November, when a company director bought 50,000 shares for $3.9 million, and the company CEO bought 25,225 shares at a cost of just over $2 million. Otherwise, company insiders have been moderate sellers of shares, mostly following the exercise of stock options.
Overall, Sarepta insiders own 4.4% of shares.
The biopharmaceutical firm working on gene therapies is up 20% over the past year, slightly lagging the overall stock market.
Sarepta managed to post a small profit last year, as revenues soared by 39%. However, Sarepta shares are still conventionally expensive at 72 times forward earnings, but that isn’t abnormal for a company in the biotech space.
Action to take: Sarepta shares have generally been trending higher over the past year. That trend looks likely to continue, especially with rising revenues and a strong pipeline. Speculative investors may like shares at current prices, and could look to add to the position following a market downtrend.
For traders, the December $160 calls, last trading for about $7.75, could see mid-double-digit returns on a continued uptrend in shares through year-end.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.