Top insider transactions of the week

Last Updated: 16. Januar 2024By

Today I will report to you again on conspicuous stock transactions by executives or renowned hedge funds. Because who should be able to assess the future development in companies better than the executives or major shareholders, who are very close to the pulse of the times?

Stock transactions by these individuals can provide you with important information. Stock purchases in particular have a high level of information content. This has a simple reason: while there are various reasons for sales (e.g. a manager also needing liquidity for private obligations), massive stock purchases are likely driven by one thing: the intention to make money.

Attached you will find three companies that stood out in the past week due to interesting insider transactions:

Opko Health At the beginning of January, the stock of biopharmaceutical company Opko Health dropped from over $1.60 to under $1.00. The trigger was the announcement of a $200 million convertible bond issue. At the significantly reduced price level, several company insiders made purchases: a total of seven different company insiders acquired 2.988 million shares. With purchase prices between 87 and 94 cents per share, the total transaction volume amounted to over $2.7 million.

OPKO Health is a biopharmaceutical and diagnostic company that focuses on providing healthcare services. The company operates in the following segments: diagnostics and pharmaceuticals. The company was founded in October 1991 and is headquartered in Miami, FL. In the third quarter, the company reported a loss of $84.5 million on revenue of $178.6 million. After the share price drop, the market value is around $750 million.

Dyne Therapeutics At Dyne Therapeutics, a major shareholder significantly increased their stake. Board member Dirk Kersten acquired 1.71 million shares of the company as part of a capital increase at a price of $17.50. This increased their stake by 36% to 6.416 million shares. Kersten had to pay around $30 million for the additional shares. They now hold over 11% of all outstanding company shares.

Dyne Therapeutics focuses on developing innovative, life-changing therapies for genetically inherited muscle diseases. The company has not yet generated revenue. In the last quarter, the loss was $60 million. Meanwhile, after a 24% rally in 2024, the company is valued at around $1 billion on the stock market.

Walgreens Boots Alliance There was also a conspicuous stock purchase at healthcare conglomerate Walgreens Boots Alliance. Executive Timothy Wentworth acquired 10,000 shares. With a purchase price of $24.22 per share, the total transaction volume was $242,220. After the purchase, Wentworth holds 585,122 shares of the company.

Walgreens Boots Alliance is a globally operating retail conglomerate in the drugstore industry. With over 20,000 stores, the company is among the market leaders in the United States. The company’s pharmacies sell prescription and over-the-counter drugs, cosmetics, hygiene products, household goods, beverages, and food.

In the last quarter, which ended in November, the company saw a 10% increase in revenue to $36.7 billion. The company reported a net loss of $67 million. To strengthen the balance sheet, the company recently cut its quarterly dividend by 48% to 25 cents per share. However, due to the significantly decreased stock price, the dividend yield is still at 4.3%.

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