AUD/USD Forex Technical Analysis – Working on Minor Reversal Bottom

TipRanks

Strong Insider Buying Could Indicate a Bottom in These 2 Stocks

Every investor knows that the path toward profits lies in buying low and selling high. That’s a basic precept of any economic trading system. The trick, however, is recognizing when the stock is low enough to buy in. The prime moment to buy is when the stock hits bottom; that will maximize returns when the share price starts to rise again. There are a multitude of possible clues investors can use to find the price bottom; today, we’ll be looking at insider buying trends. Insiders – the corporate officers, board members, and others ‘in the know’ – don’t just manage the companies, they know the details. Legally, they are not supposed to trade that knowledge, or to blatantly trade on it, and disclosure rules by government regulators help to keep the insiders honest. Their honest stock transactions, however, can be highly informative. These are the people with the deepest knowledge of particular stocks. So, when they buy or sell, especially in bulk, take note. In this case, we’ve used the TipRanks Insiders’ Hot Stocks tool to find two stocks whose price has dropped recently – and that drop has coincided with some ‘informative buy’ insider trades. Let’s take a closer look. Intercept Pharma (ICPT) We’ll start in the pharmaceutical sector, with Intercept, a specialist in the treatment of chronic liver conditions. Intercept Pharma is working to develop treatment for several chronic and serious diseases of the liver, including primary biliary cholangitis (PBC) and nonalcoholic steatohepatitis (NASH). The company’s chief compound, obeticholic acid (OCA), was developed as an analog of the CDCA bile acid, and can play a role in treating liver conditions through the FXR receptor pathway. OCA, also called Ocaliva, has received approval by the US FDA and in Europe for use to treat PBC. Intercept has, in recent months, seen important changes. First, the company has experienced churn in the upper management. Effective this past January 1, the company’s COO Jerome Durso stepped up to the CEO post, and earlier this month CFO Sandip Kapadia announced that he will step down on March 26. His position will be filled on an acting basis by Rocco Venezia as an interim measure. On the business side, the company reported 4Q20 results at the end of February. The release showed significant gains in worldwide sales of OCA. Q4 net sales reached $83.3 million, up 18% year-over-year, and the full year sales grew 25% yoy to reach $312.7 million. The company gave guidance toward $325 million to $355 million for 2021 net sales of OCA. On a negative note, the EPS net loss in Q4 was worse than expected, coming in at $1.58 against a forecast loss of $1.47. And, while the OCA sales were up from last year, quarterly revenue was also below expectations. After the earnings release, the stock fell 19%. That loss came on top of a difficult 9 months for Intercept. The stock is down ~74%…