Sujal Patel, President and CEO of Nautilus Biotechnology (NAUT), recently added 250,000 shares. The buy increased his holdings by 1.5 percent, and came to a total price just over $1.1 million.
A director also bought shares on the same day, picking up 50,000 shares at a price totaling just over $250,000. Several insiders, including the company CFO and other directors were buyers in November at slightly higher prices.
Overall company insiders own over 38 percent of the company, which just went public earlier this year.
Since going public, shares have stopped 57 percent. As an early stage biotech company, the firm is experiencing steep losses, but is working on a life sciences technology to unlock the human proteome.
Action to take: Shares look interesting as a rebound play here, as they’re heavily oversold in the short-run. More importantly, as part of the company’s IPO, it’s a cash-rich operation, with over half the share price of the company represented by cash. Investors could make out quite well from these prices if the company’s work leads to results.
For traders, insider buys here are a good sign of undervaluation. The March $5 calls are an at-the-money trade going for about $1.15 right now. On a rally in shares in the next few months, the option should outperform a rally in shares.
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 of the companies mentioned in this article.