10 Micro-Cap Stocks Insiders Were Buying in Q1 2025

8. Fractyl Health, Inc. (NASDAQ:GUTS)

Number of insiders buying: 5

Market Capitalization: $54.30 million

Fractyl Health is a metabolic therapeutics company focused on developing treatments for type 2 diabetes (T2D) and obesity. It is developing the Revita DMR System, a procedure targeting duodenal dysfunction, and Rejuva, a gene therapy platform aimed at long-term remission of T2D by altering metabolic hormone function in the pancreas.

In January, the company announced a strategic decision to focus Revita exclusively on weight maintenance, prioritizing the REMAIN-1 pivotal study to address the most pressing need in obesity care, while advancing its novel Rejuva gene therapy platform into first-in-human studies. Fractyl paused investment in its Revita programs for T2D, which consisted of the REVITALIZE-1 study, and the Germany Real-World Registry study.

In March, the company announced positive early data from its REVEAL-1 cohort in the REMAIN-1 pivotal study, suggesting that Revita may help prevent weight regain after stopping GLP-1 drugs. This addresses an unmet need in obesity treatment as the demand for scalable, non-pharmacologic solutions grows with increasing GLP-1 discontinuation rates.

During the first quarter, five insiders acquired approximately $193,475 worth of Fractyl Health shares at an average price of $1.24 per share. Currently, the stock trades at $1.11 per share, having declined 46.12% year-to-date and 83.53% over the past 12 months. Net loss amounted to $68.69 million, compared to net loss of $77.09 million in 2023.

For the full year 2024, Fractyl Health reported revenue of $93,000, compared to $120,000 in 2023. Gross profit was $43,000, flat compared to the previous year.

Based on two Wall Street analysts’ estimates, Fractyl Health stock is a “Moderate Buy” with a price target of $8.00. The average price target suggests a 620.72% potential upside from the latest price.