Stephen Mahoney, President and CEO of Viridian Therapeutics (VRDN), recently bought 21,400 shares. The buy is an initial stake for the CEO, and came to a total cost of $499,262.
He was joined by the company COO, who bought 5,000 shares. That buy increased the COO’s stake by 500%, and cost $117,050. A major holder has also been a buyer earlier this year. Going further back, insider activity has been more mixed, with more insiders selling in 2022 and 2023 when the share price was higher.
Overall, Viridian insiders own 0.01% of shares.
The biotech company targeting autoimmune and thyroid eye diseases is up 61% over the past year, nearly double the return of the overall stock market.
As an early-stage biotech company, Viridian isn’t making a profit right now and burned through $250 million over the past year.
If that run rate holds, the company has two years to develop a successful product before it will have to raise more capital, most likely by issuing more shares.
Action to take: Viridian has been trending higher since the summer, and the returns have strengthened in recent weeks. Momentum investors may like shares here for further upside over the coming months.
For traders, the January 2025 $25 calls, last trading for about $2.90, could see high double-digit returns depending on how much further shares rally in the months ahead.
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.